Today (June 15), the US Federal Reserve voted 10–1 to raise the policy rate by 75 basis points, the highest rate hike in 28 years, as inflation unexpectedly rose.
The consumer price index increased by 8.6% in the year ended in May, the largest increase since 1981 and reversing a brief drop in inflation in April.
“We had expected to see indicators of inflation levelling out by this stage,” head Jerome Powell told reporters. He stated that the Fed would continue to tighten policy.
