The Fed Announces Another Rate Hike To Rein In Inflation, But Economists Aren’t Convinced

The Federal Reserve raised interest rates by 0.75% on Wednesday as the central bank tries to fight inflation by decreasing consumer spending, but some economists aren’t convinced that it’ll be enough to stop inflation, or that it won’t push the economy into a recession.

The federal funds rate, the main interest rate that the Federal Reserve manipulates to control the economy, now stands between 2.25% to 2.50%, up from between 1.5% to 1.75%, according to the Federal Reserve’s press release. The Federal Reserve has been fighting inflation by raising rates since March, issuing a massive rate hike of 0.75% in June, but prices have continued to climb, with the consumer price index registering 9.1% year-over-year in June.

The past two months’ combined 1.50% rate increase is the largest in over 30 years, Bloomberg reported.