Fed raises interest rate by 0.75%

The Federal Reserve raised its benchmark interest rate three-quarters of a point for a second straight time, according to an Associated Press report. The second steep hike is another aggressive move to tame high inflation. The key rate will move to a range of 2.25% to 2.5%, its highest level since 2018. Fed Chair Jerome Powell stressed that the Fed remains committed to defeating chronically high inflation, but is holding out the possibility that it may soon downshift to smaller rate hikes. However, Powell is not ruling out another three-quarter-point hike when the Fed’s policymakers next meet in September since the rate decision will depend upon many economic reports that will be released between now and then.