US Fed Chairman says 75 basis point rate hike not 'actively considered'

US Federal Reserve Chairman Jerome Powell

US Federal Reserve Chairman Jerome Powell played down the prospect of a 75 basis point rate hike as the central bank will act aggressively to stamp out inflation.

"A 75 basis point increase is not something that the committee is actively considering," Powell told a press conference.

The Fed on May 4 raised its benchmark overnight interest rate by 50 basis points, the biggest jump in 22 years. It would begin trimming its bond holdings next month as a further step in the battle to lower inflation.

"Inflation is much too high and we understand the hardship it is causing. We are moving expeditiously to bring it back down," Powell said.