US Fed aims to counter inflation with biggest interest rate hike since ’94

By AP and ToI Staff 15 June 2022, 9:23 pm

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Customers using ATM machines at a branch of Chase Bank in New York, January 14, 2015. (AP/Mark Lennihan)

The Federal Reserve intensifies its drive to tame high inflation by raising its key interest rate by three-quarters of a point — its largest hike in nearly three decades — and signaling more large rate increases to come that would raise the risk of another recession.

The move will increase its benchmark short-term rate, which affects many consumer and business loans, to a range of 1.5% to 1.75%.

Last month, the Bank of Israel hiked its benchmark interest rate by 0.4 percentage points, from 0.35% to 0.75%, in its second rate hike in two months as it also seeks to tamp down inflation.