Fed increases interest rates as US inflation hits 14-year high

0.75 percentage points

The US Federal Reserve hiked interest rates by another 0.75 percentage points and increased the target interest rate from 2% to 3-3.25% range.

This percentage increase was in line with economists' forecasts as US inflation is at a 14-year peak. Federal Reserve chair Jerome Powell outlined the central banks' bleak outlook, indicating that another large rate hike was likely by the end of the year. He said that there was no "painless way" to dampen inflation and that although a soft landing was still the Fed's target, "no one knows whether this process will lead to a recession or if so, how significant that recession would be". Four graphs explaining...