Federal Reserve hikes interest rate by 0.75%

The Federal Reserve raised interest rates significantly on Wednesday, hiking it 0.75%,

escalating a strategy of increased borrowing costs that aims to dial back historic inflation.

The rate hike of 0.75% marks the largest increase since 1994.

The dramatic rate increase follows new inflation data that showed a reacceleration of price increases

to levels not seen for more than four decades, dashing hopes that inflation had reached its peak.

“We at the Fed understand the hardship that high inflation is causing

and we’re strongly committed to bringing inflation back down,”Federal Reserve Chair Jerome Powell said on Wednesday.

The Federal Reserve “anticipates ongoing increases” in its benchmark interest rate, he added.

A rate hike of 0.75% brings the interest rate to a range of 1.5% to 1.75%

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