The Feds high-rate hike

The Federal Reserve announced it will raise its benchmark policy rate by 75 basis points, while also suggesting that this potentially won't be the only adjustment of this magnitude. This was done in an attempt to combat the announced inflation rate, sitting at 8.6%, the highest level in 40 years. The Fed is not alone in its endeavours to deal with inflation, which has become a global trend. Central banks throughout advanced and emerging economies have been swiftly raising interest rates in short order, with plans to do more this year. US financial markets rallied after Powell said that he expected a 0.75 percentage point increase to be relatively uncommon.