Fed Raises Rates by 75 Basis Points To Clamp Down on Inflation

Federal Reserve officials raised interest rates by 75 basis points for the second straight month, delivering the most aggressive tightening in more than a generation to curb surging inflation -- but risking a sharp blow to the economy. From a report: 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. The Federal Open Market Committee "is strongly committed to returning inflation to its 2% objective," it said in a statement released in Washington, repeating previous language that it's "highly attentive to inflation risks." The FOMC reiterated it "anticipates that ongoing increases in the target range will be appropriate," and that it would adjust policy if risks emerge that could impede attaining its goals.

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