Fed raises key interest rate 0.75 point amid red-hot inflation, dollar hits 20-year high vs euro
It was the third consecutive increase of 0.75 percentage point by the Fed's policy-setting Federal Open Market Committee (FOMC), continuing the aggressive action to tamp down inflation that has soared to the highest in 40 years.
- Economy
- AFP
- Published Date: 09:07 | 21 September 2022
- Modified Date: 09:27 | 21 September 2022
The Federal Reserve raised the key US interest rate again Wednesday and said more hikes are coming as it battles soaring prices.
It was the third consecutive increase of 0.75 percentage point by the Fed's policy-setting Federal Open Market Committee (FOMC), continuing the aggressive action to tamp down inflation that has soared to the highest in 40 years.
The increase takes the policy rate to 3.0-3.25 percent, and the FOMC said it "anticipates that ongoing increases... will be appropriate."
Fed officials also said they see US GDP slowing sharply in 2022, but growth in 2023.
The dollar surged to a near 20-year peak against the euro after the hike.
The euro to dollar ratio hit 0.9814 for the first time since October 2002, just months after the currency became the sole legal tender of 12 European Union states.