United States: Fed’s biggest rate hike since 1994
NEW YORK (77WABC) — There’s been some negative reaction from industry leaders to the Federal Reserve’s decision to hike interest rates three-quarters of a percentage point.
Former Home Depot CEO Bob Nardelli warned Wednesday on Fox News that the federal reserve hiking interest rates to cool inflation will have a “devastating impact” on consumers.
“I would tell the consumer, make sure that you’re building up cash reserves,” Nardelli said. “Build up a supply of non-perishables in your home. Make sure that you’re prepared for sustainable inflationary periods.”
The 75 basis point hike is the largest since 1994. The Fed’s decision comes in response to record-high inflation and shrinkflation crippling the nation’s economy for months.
May’s Consumer Price Index (CPI) was up 8.6%, representing a steady increase since President Joe Biden entered office. The White House has remained optimistic about inflation as part of the transition to a green energy economy.
