The Federal Reserve on May 4, 2022, lifted its benchmark interest rate by half a percentage point to a range of 0.75% to 1%, its biggest increase in 22 years. The aggressive move, which has been expected for many months, is part of the U.S. central bank’s effort to slow the fastest inflation in 40 years. More rate hikes are forecast in the coming months.
Economists, financial markets and others are concerned that rising rates could send the economy into recession. Even worse, some worry higher rates could lead to what’s known as stagflation.
