Federal Reserve Hikes Interest Rate 0.75 Percentage Points for Second Consecutive Time
Posted on 07/28/2022
The Federal Reserve on July 27, 2022, raised interest rates by 0.75% as the central bank attempts to avoid a deep recession and contain out-of-control inflation. Wednesday’s decision was unanimously agreed upon by voting members of the Federal Open Market Committee (FOMC). A 75-basis-point rate hike by the Federal Reserve has now happened twice in a row. The federal funds rate has increased from near-zero to a range of 2.25% to 2.5%.
Federal Reserve Chairman Jerome (Jay) Powell said on July 27, 2022, that he does not believe the U.S. economy is in a recession.
“I do not think the U.S. is currently in a recession and the reason is there are too many areas of the economy that are performing too well,” Jerome Powell said at a press conference following the Federal Reserve’s decision to raise rates by 0.75% for a second consecutive time. “This is a very strong labor market … it doesn’t make sense that the economy would be in a recession with this kind of thing happening.”
Keywords: Federal Reserve System
