The Federal Reserve raised a key interest rate again by three-quarters of a percent on Wednesday to contain soaring inflation, but Fed Chairman Jerome Powell said he doesn’t see evidence of a recession and suggested that future rate increases will be smaller.
Stocks soared on the development.
The Fed announced the fourth increase in the central bank’s benchmark borrowing rate since March to tamp down inflation that reached an annual rate of 9.1% in June. It’s the highest inflation in 41 years.
The rate increase to a range of 2.25% to 2.5% is the highest level since 2018.