The reason behind the Fed’s big rate hike

Good morning and happy Thursday. It’s Jayme Deerwester, back on Daily Money duty. Many thanks to Brett Molina for dishing the Money, Tech and Travel headlines while I was locked in a room finishing a project. On top of that, he picked some good Mood Music tracks for y’all.

As expected, the Federal Reserve rolled out the heavy artillery in its bid to fight a historic inflation spike that has shown little letup. Jerome Powell and his crew raised the key short-term interest rates by three-quarters of a percentage point Wednesday – its largest hike since 1994 – to a range of 1.5% to 1.75%. 

Why did the Fed just do its biggest rate hike since 1994?

OK, so what was this rate hike supposed to accomplish? And why was this one so big?

Source link

Leave A Comment

Chinese (Simplified)EnglishFrenchItalianPortugueseRussianSpanish