Fed hikes rate by 75 bps, the biggest raise since 1994

The Federal Reserve announced on Wednesday its biggest rate hike to curb inflation, raising benchmark interest rates by 75 points in a move that is considered the most aggressive hike since 1994.

This is the third time the Fed decides to hike it benchmark interest rate this year. The Central Bank raised its estimates of inflation to 5.2% during 2022.

The Fed added that its benchmark interest rates are now in the range (1.50%-1.75%).

It is noteworthy that the inflation as measured by the consumer price index (CPI) surged 8.6% on a yearly basis in May, the highest since 1981.

The US Fed stressed on its commitment to get the inflation back to the target (2%).