ToplineThe stock market moved higher on Wednesday after the Federal Reserve raised interest rates by 75 basis points—the largest increase in 28 years, while Fed Chair Jerome Powell also signaled that the central bank could raise rates again by the same magnitude at an upcoming meeting next month. The Fed raised interest rates more aggressively than forecast as markets continue to be gripped by ... [+] recession fears. The market rallied after the Federal Reserve announced it would raise interest rates by 75 basis points, the biggest increase since 1994, as it looks to combat red-hot inflation. Stocks especially got a boost after Fed Chair Jerome Powell said that the central bank will continue to hike rates aggressively, with a similar 75-basis-point increase under consideration for the next meeting in July. The last time the Federal Reserve raised interest rates by 75 basis points was under the leadership of Alan Greenspan in November 1994, when the central bank orchestrated a soft landing and avoided a recession despite hiking rates seven times in 13 months.

Source: Forbes June 16, 2022 04:57 UTC