United States: Fed chief Jerome Powell
WASHINGTON (AP) — The Federal Reserve is expected to announce its largest interest rate hike since 1994 — a bigger increase than it had previously signaled and a sign that the central bank is struggling to restrain stubbornly high inflation.
WATCH LIVE TODAY: Press conference with #FOMC Chair Powell at 2:30 p.m. ET: https://t.co/1uJrua5qsHhttps://t.co/FJa6TbkDMt pic.twitter.com/4DaC3fAh8j
— Federal Reserve (@federalreserve) June 15, 2022
The central bank is considered likely to raise its benchmark short-term rate by three-quarters of a percentage point, far larger than the typical quarter-point increase. It will also likely forecast additional large rate hikes through the end of the year. A flurry of large Fed rate hikes will heighten borrowing costs for consumers and businesses, likely leading to an economic slowdown and raising the risk of a recession.
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