Federal Reserve Announced it is raising interest rates 0.75% Yesterday, July 27, 2022

[Stuart G]

https://www.bankrate.com/banking/federal-reserve/fed-interest-rate-decision-biggest-winners/

The Federal Reserve announced that it’s raising interest rates 0.75 percentage points, following its July 26-27 meeting, bumping the federal funds rate to a target range of 2.25 to 2.50 percent. The move follows an increase of 75 basis points in June, as the Fed rapidly reduces liquidity to the financial markets to help tamp down soaring inflation.

The Fed’s decision comes as inflation rages in the U.S. economy at the highest annual rate in some 40 years, reaching 9.1 percent in June. With the Fed hitting the brakes on an overheated economy, the main question for many market watchers is how fast Fed Chair Jerome Powell will continue to raise rates and whether that spills over into a recession.

“Inflation has set a fresh four-decade high, compelling the Federal Reserve to keep hiking rates in an aggressive fashion,” says Greg McBride, CFA, Bankrate chief financial analyst. “This latest rate hike is evidence that the second half of 2022 will see the Fed even more active than they were in the first half of the year.”