Fed hikes rates by 0.75 percentage point, biggest increase since 1994 - by GEORGE NEWS

Federal Reserve Chair Jerome Powell holds a news conference after the Central Bank announced it was raising interest rates by .75 percent, the highest increase since 1994, in an effort to tamp down inflation. The Federal Reserve approved the largest hike to its benchmark interest rate since 1994 on Wednesday as officials frantically seek to tamp down the decades-high inflation hitting household budgets.

The rate-making Federal Open Market Committee announced the hike of 0.75%, or 75 basis points, at the conclusion of its two-day meeting. The hike moved the benchmark short-term rate to a range of 1.5% to 1.75%.

The hike was in line with revised expectations after last week’s release of the Consumer Price Index for May. The federal data showed inflation accelerated to a higher-than-expected 8.6% last month, the sharpest rate since December 1981.