The Federal Reserve announced Wednesday that it would hike interest rates by 0.75% — the boldest action since 1994.
The central bank already increased rates by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. While the Consumer Price Index (CPI) increased 8.6% year-over-year as of May, the Producer Price Index (PPI) — which monitors inflation for wholesalers — increased 10.8% over the same period, according to two recent reports from the U.S. Bureau of Labor Statistics.
“Overall economic activity appears to have picked up after edging down in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low,” the Federal Open Market Committee, which handles the