Federal Reserve Chairman Jerome Powell speaks at a press conference in Washington on July 27, 2022, after the Fed decided to raise the benchmark interest rate by 0.75 percentage point for the second straight meeting. (Photo by Kyodo News/Sipa USA)
United States: Fed continues huge rate hike
WASHINGTON (AP) — An inflation gauge that is closely tracked by the Federal Reserve jumped 6.8% in June from a year ago, the biggest increase in four decades, and leaving Americans with no relief from surging costs. Friday’s figures from the Commerce Department underscored the persistence of the inflation that is eroding Americans’ purchasing power, dimming their confidence in the economy and threatening Democrats in Congress in the run-up to the November midterm elections. On a month-to-month basis, prices rose 1% from May to June, faster than the 0.6% rise from April to May and the biggest such jump since 2005.
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