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Fed Hikes Interest Rates By 75 Basis Points, Largest Increase Since 1994

Fed Hikes Interest Rates By 75 Basis Points, Largest Increase Since 1994 | 15 June 2022 | The Federal Reserve has raised interest rates by 75 basis points, the single largest increase in nearly thirty years as inflation soars. The hike to the federal funds rate -- the benchmark interest rate at which banks borrow and lend money to each other overnight, affecting money supply in the economy -- was announced Wednesday, after a meeting of the Federal Open Market Committee led by Chairman Jerome Powell. In the short-term, the Federal Reserve said that it would intend to bring the rate to a range of 1.5 percent to 1.75 percent. Of the eight-member committee, seven voted in favor of the hike while one member, Esther George, President of the Federal Reserve Bank of Kansas City, voted against the increase, preferring that it be 0.5 percent instead.