In the days before the 0.75 point hike, there had been reports that in May, the consumer price inflation rate had risen to 8.6% and consumer expectations for the inflation rate in the year ahead had risen to 6.6%. And the Fed will very likely be raising rates further in 2023. Because the worse inflation gets, the harder it is to bring down. One is that it's still not raising rates enough. In the short run, the Fed seems to have decided that -- between a recession and inflation -- a recession is the lesser of two evils.

Source: Wall Street Journal June 18, 2022 16:23 UTC