Federal Reserve Announces .75% Interest Rate Hike
Dow, S&P jump during Powell press conference following the central bank’s biggest rate increase since 1994
The Federal Reserve announced a 0.75 percentage point rate hike Wednesday to help combat soaring inflation, the largest rate increase in 28 years.
The Fed said it raised the rates "to 1‑1/2 to 1-3/4 percent and anticipates that ongoing increases in the target range will be appropriate."
"The committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run," the Federal Reserve said in a statement. "In addition, the committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that was issued in May. The committee is strongly committed to returning inflation to its 2% objective."
The decision is expected to curb inflation, but that comes at a cost to the eco