Federal Reserve Announces Second Major Interest Hike of 2022
The Federal Reserve raised the interest rate yesterday for the second time this year. After it’s July monetary policy meeting, members of the U.S. central bank approved an interest rate hike of three-quarters of a percentage point and members voted unanimously in favor of the increase. Over the last three decades, the Fed has nudged its interest rate up or down by an average of 25 basis points but, last month the bank implemented a rate hike of three times that amount marking the first time since 1994 that the Fed has rolled out a 75 basis point increase. The rate hike yesterday marks the first time in modern history that the bank raised rates by 75 basis points twice in a row.