The Federal Reserve raised its target interest rate by three-quarters of a percentage point on Wednesday, June 15, to step a disruptive surge in inflation.
The rate hike is the biggest announced by the Fed since 1994. The central bank delivered the announcement after recent data showed little progress in its battle to control a sharp spike in prices.
The rate hike raises the Fed’s benchmark short-term rate to a range of 1.5% to 1.75%. With the additional rate hikes they foresee, the policymakers expect their key rate to reach a range of 3.25% to 3.5% by year’s end. Learn more.