Fed meets inflation surge with 75bp hike
Unexpected spike in inflation and expectations spurs committee into rare policy aggression
The US Federal Reserve voted 10–1 to increase the policy rate by 75 basis points today (June 15), executing its largest rate hike in 28 years as inflation unexpectedly surged.
The consumer price index rose by 8.6% over the year ending in May, the highest increase since 1981 and a reversal of April’s short-lived decline in inflation.
“By this point we had expected to see signs of inflation at least flattening out,” chair Jerome Powell told reporters. He said the Fed would keep tightening policy
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