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US Fed hikes benchmark interest rate by 0.75 percentage point

Published July 27,2022
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The US Federal Reserve on Wednesday raised its benchmark interest rate by three-quarters of a percentage point for a second straight meeting as it battles soaring consumer prices.

The Fed's overnight bank lending rate now has a range of of 2.25% to 2.5%, in line with analyst forecasts.

This is the fourth hike since March and comes in response to inflation hitting a four-decade high last month.

In June, the consumer price index increased 9.1% from a year ago, with energy, food and housing costs all shooting up.

Federal Reserve chairman Jerome Powell is due shortly to hold a press conference to explain the reasoning behind the hike and indicate the central bank's future rate course.