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The Federal Reserve is currently raising its benchmark interest rate by half a percentage point, taking its most aggressive action yet to combat a 40-year high in inflation. Fed Chairman Jerome Powell acknowledges the hardships caused by high inflation and assures the American people of their commitment to restoring price stability. Multiple 50-basis point rate hikes are expected in the future, along with a reduction in the Fed's $9 trillion balance sheet. These measures are driven by the need to recalibrate monetary policy due to the surge in prices.
Tuesday, 3 May, 2022