Federal reserve bumps key interest rate

Federal reserve bumps key interest rate

A man shops at a supermarket on Wednesday, July 27, 2022, in New York. The Federal Reserve on Wednesday raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its most aggressive drive in three decades to tame high inflation. The Fed is tightening credit even while the economy has begun to slow, thereby heightening the risk that its rate hikes will cause a recession later this year or next. (AP Photo/Andres Kudacki)

(AP) — The Federal Reserve has raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its most aggressive drive in more than three decades to tame high inflation. The latest Fed move raises its key rate, which affects many consumer and business loans, to a range of 2.25% to 2.5%. That’s its highest level since 2018. Speaking at a news conference after a Fed policy meeting, Chair Jerome Powell offered mixed signals about the central bank’s likely next moves. He stressed that the Fed remains committed to defeating high inflation. But he also held out the possibility that it may soon downshift to smaller rate hikes.

Photo: (AP Photo/Andres Kudacki)