Biggest Hike Since 1994

Federal Reserve Raises Interest Rates by 0.75%

Biggest Hike Since 1994

New Target Range Set at 1.5%-1.75%

Today, the Federal Reserve announced a 0.75% increase in interest rates, the largest single hike since 1994. The move comes as the central bank strives to combat soaring inflation, which has reached a four-decade high in the United States.

The Federal Open Market Committee (FOMC) voted unanimously to raise the target range for the federal funds rate to 1.5%-1.75%. The decision, which was widely expected by economists, marks a significant acceleration in the Fed's monetary tightening cycle.

In a press conference following the announcement, Federal Reserve Chair Jerome Powell emphasized the Fed's commitment to bringing inflation down to its target of 2%. Powell acknowledged that the rate hike would likely slow economic growth, but stressed that it was necessary to address the current inflationary pressures.

The Fed's decision is likely to have far-reaching implications for the U.S. economy and financial markets. Higher interest rates will make it more expensive for businesses and consumers to borrow money, which could dampen spending and lead to slower economic growth.

However, the Fed believes that the long-term benefits of bringing inflation under control outweigh the short-term risks. The central bank has indicated that it will continue to raise interest rates as needed to achieve its inflation target.