US Federal Reserve has hiked the interest rates by another 75 basis points, to a range of 3.75 percent to 4 percent. The reason for the Fed’s hawkish monetary stance this year is inflation. Addressing a news conference last night, Fed Chairman Jerome Powell warned that taming severe inflation will likely require
even higher interest rates.
Fed officials expect the problem to linger into next year, that leaves open the possibility rate hike in the future also. The rate, which was near zero in March, has jumped 3.75 percentage points in the last eight months.