US Federal Reserve hikes interest rate by 75 basis points to check inflation

Washington: US Federal Reserve last night hiked interest rate by 75 basis points to check inflation. It was the second straight 75 basis point increase, and the fourth rate hike this year.

Economists say this has been the most aggressive Fed tightening cycle since the 1980s, when stagflation crippled the US economy. After the rate hike, Fed Chair Jerome Powell told reporters that another unusually large increase could be appropriate at the next meeting.

President Joe Biden is facing political backlash for surging prices, which he has mainly blamed on the Russia-Ukraine conflict that has sent global food and energy prices soaring.