From CBC News:
The Federal Reserve has raised its benchmark interest rate by 75 basis points to a range of up to 1.75 per cent, its most aggressive hike in almost 27 years, as the U.S. central bank scrambles to rein in runaway inflation.
The bank’s rate, known as the federal funds rate, impacts the rates that borrowers and savers get from banks, most notably variable rate mortgages.
The bank had been expected to raise its rate by half a percentage point, but those expectations were ratcheted up in recent days as data showed the U.S. inflation rate has yet to peak, touching 8.6 per cent in the year up to May.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the bank said in explaining its decision.