Federal Reserve Issues Largest Rate Hike in 22 Years
Posted on 05/04/2022
The Federal Reserve is raising interest rates by a rare half-percentage point to try to tame the worst inflation the United States has felt in 40 years. The interest rate hike decision was unanimous, with all 12 members of the policy-setting Federal Open Market Committee (FOMC) agreeing on it. The action raised the central bank’s benchmark federal-funds rate to a target range between 0.75% and 1%.
It’s the first time in 22 years that the central bank has hiked rates this much. The last half point interest rate increase was in 2000. The Federal Reserve announced plans to shrink its $9 trillion asset portfolio starting in June 2022.
Keywords: Federal Reserve System.