The Federal Reserve announced another rise in interest rates this week, with another planned bump of three-quarters of a percentage point. It’s the second such raise in two months as inflation sits at a 41-year high and threats of a recession hang over the economy.
The Fed has now raised rates a total of 2% over the past three months, following a 0.5% raise in May.
Chair Jerome Powell said this was the “appropriate thing to do.”
The Federal Open Market Committee said, “Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”
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