Economics
Fed Hikes 75 Basis Points Second Time, Signals Third Is Possible
- Back-to-back increases are biggest since early 1980s
- Powell says Fed will slow pace of rate hikes at some point
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Federal Reserve officials raised interest rates by 75 basis points for the second straight month and Chair Jerome Powell said a similar move was possible again, rejecting speculation that the US economy is in recession.
Policy makers, facing the hottest cost pressures in 40 years, lifted the target for the federal funds rate on Wednesday to a range of 2.25% to 2.5%. That takes the cumulative June-July increase to 150 basis points -- the steepest since the price-fighting era of Paul Volcker in the early 1980s.