In an effort to fight soaring inflation, the Federal Reserve is raising its key interest rate by three-quarters of a point—triple the usual amount. And the biggest hike since 1994.
With inflation at a four-decade high, drastic action was needed.
High costs for everything from food to gas have sparked fears the country may be headed into a post-pandemic recession.
The Federal Reserve Building in downtown Washington DC.
White House press secretary Karine Jean-Pierre had this to say:
‘We know that higher prices are having a real effect on people’s lives. We get that and we are incredibly focused on doing everything that we can to make sure that the economy is working.’
‘We are coming out of the strongest job market in American history. And that matters and that a lot of that is thanks to the American rescue plan, which only Democrats voted for that Republicans did not. And it led to this, this economic growth, this historic economic boom that we’re seeing.’