US Fed lifts interest rate by 75 basis points for second consecutive time

The Federal Reserve 

The Federal Reserve raised today, July 27 interest rates by 75 basis points (bps) for the second straight time to control accelerating inflation.

The Federal Open Market Committee (FOMC) decided unanimously to raise the target range for the federal funds rate to 2.25% - 2.5% range, in line with expectations.

In the last two meetings, the US central bank made a cumulative interest rate increase of 150 bps -- the largest hike since early 1980s.

The Fed said in its statement on Wednesday that while recent indicators of spending and production have softened, the job market remains strong and unemployment low.

"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures," the FOMC said in a statement announcing the rate increase.