The Clap
The Federal Reserve has increased interest rates for the second consecutive time.
The Deets
On Wednesday, the Fed decided to increase interest rates by 0.75% to reach a benchmark range of 2.25%-2.5%.
The increase in interest rates comes as an effort to curb runaway inflation without triggering a recession. This is the second consecutive month where the Fed pushed interest rates up by 0.75%.
Why the increase in interest rates?
The Fed has claimed they are strongly committed to reducing inflation, even if it comes at the cost of economic growth.
High prices are taking a heavy toll on consumers, and concerns about a recession are getting bigger. A slowdown in the economy could actually allow the US to have sustainable economic growth.
The Fed nudges interest rates up 🏛
