Fed Issues Most Aggressive Rate Hike Faced with the highest inflation
in more than 40 years, the Federal Reserve has once again turned up the heat, taking its most aggressive step yet in the attempt to curb inflation. The Federal Open Market Committee (FOMC) unanimously decided
to raise the target range for the federal funds rate to
1.50 to 1.75, with further rate hikes looking inevitable. The
75 basis point hike follows an already aggressive 50 basis point increase in May and marks
the largest upward step since 1994 The latest projections made by FOMC members indicate that even
that won't be the end of it, though. The median projection of the midpoint of the appropriate target range at the end of this year is now 3.4 percent, up from a March projections of 1.9 percent.
Rate hikes could continue in 2023, with the median projection from committee members raised to 3.8 percent for the end of 2023, up from 2.8 percent in March.
