US Fed makes biggest rate hike since 1994

Washington: The US Federal Reserve on Wednesday (local time) raised interest rates by 75 basis points (bps) or three-quarters of a percentage point in the boldest move since 1994.
It’s the largest rate hike since 1994 and will affect millions of American businesses and households, pushing up the cost of borrowing for homes, cars and other loans in order to force a slowdown in the economy, reported CNN.
The American economy, like others in the world, is facing high inflation and the pace is hitting a 40-year high. In an aggressive move to tackle white-hot inflation that is plaguing the economy, frustrating consumers and stifling the Biden administration, the interest rates have been raised.
Economists, investors expectations Until this week, economists and investors had expected the Fed to raise its benchmark interest rate by half a point, the second such move in the last 22 years.
However, after a disastrous inflation report revealed that price hikes are broadening across the entire economy, expectations rose for a more dramatic rate hike.
In a post-meeting news conference, Federal Reserve Chairman Jerome Powell acknowledged that a three-quarter-point rate hike “is an unusually large one.”