The Federal Reserve has raised its benchmark interest rates by 75 basis points for the second consecutive month in a row in a bid to tame the increasing rate of inflation.
This follows a half-point rise in May, and a 0.75 percentage-point rise in June; depicting the first of that magnitude since 1994.
At the end of the two-day policy meeting, the Federal Open Market Committee; lifted the target range of the federal funds rate to 2.25 per cent to 2.50 per cent.
Speaking to the recent move by Fed, Jay Powell, Fed chair pointed out that the continuous tightening of the policy; will likely become appropriate to slow the pace of increases as policymakers assess how rate rises are affecting the economy and inflation.
However, Powell said he does not think the economy is in recession, even though growth was negative in the first quarter; and was expected to be barely positive in the second quarter.