Fed makes aggressive rate hike

In an aggressive move to fight high inflation, the Federal Reserve has raised its key interest rate by three-quarters of a point, according to a report from the Associated Press. The increase is the largest hike since 1994. Data released last week showed U.S. inflation rose by 8.6% in May, the largest jump in 40 years. The Fed’s benchmark short-term rate will now be set to a range of 1.5% to 1.75%. The Fed’s policymakers have indicated that more rate hikes will come, doubling the short-term rate by the end of 2022.