General World News

Fed hikes rates by 75 bps, the largest increase since 1994

The Federal Reserve (Fed) on Wednesday did something it hadn’t done in more than two decades: it raised the federal funds rate by 75 basis points, to 1.50-1.75%, a hike not seen since 1994. 

The decision, designed to slow the pace of inflation, which reached 8.6% in May for the highest mark in more than 40 years, has potential to increase the cost of mortgage borrowing.

“Overall economic activity appears to have picked up after edging down in the first quarter,” The Federal Open Markets Committee said in a statement Wednesday afternoon. “Job gains have been robust in recent months, and the details ⇒

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