Fed announces second consecutive 0.75% rate hike

Source: USA Today

“Another month, another outsize interest rate hike. The Federal Reserve raised its key short-term rate by three-quarters of a percentage point for a second straight month Wednesday in a bid to corral soaring inflation, matching the largest increase since 1994. It puts the federal funds rate – which is what banks charge each other for overnight loans — at a range of 2.25% to 2.5%, close to the Fed’s 2.5% long-run, or neutral rate. That’s the rate intended to neither stimulate nor curtail economic growth. … Wednesday’s rise is expected to ripple through the economy, sharply pushing up rates for credit cards, home equity lines of credit and other loans.” (07/27/22)