Federal Reserve raises interest rates by most since 1994
The Federal Reserve (Fed) on Wednesday launched its biggest assault yet against spiralling inflation, raising the benchmark interest rate by three-quarters of a percentage point, the most aggressive hike since 1994. The Fed raised the target rate range for the federal funds rate by 75 basis points to 1.50 to 1.75 per cent. As monetary policymakers drive their interest rates higher, they will make buying a home or expanding a business more expensive, restraining spending and slowing the broader economy. The central bank expects growth to moderate in the coming months and years and predicted that unemployment will rise about half a percentage point to 4.1 per cent by late 2024 as tighter monetary policy dampens economic growth. Meanwhile, industrial production in the eurozone increased in April, partly offsetting a decline from the previous month, as factories across the bloc continue to struggle with supply bottlenecks and high costs. Industrial output in the countries that share the euro currency rose by a marginal 0.4 per cent month-on-month in April, partly reversing a 1.4 per cent fall in March, as the production of energy rose by 5.4 per cent, intermediate goods by 0.7 per...