Fed Raises Interest Rates by 0.75 Percentage Point, Largest Increase in 28 Years

Either 0.50 or 0.75 percentage point hike 'seems most likely' at the July meeting, according to Powell

Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve in Washington on June 15, 2022. Drew Angerer/Getty Images

The Federal Reserve raised the benchmark interest rate by 75 basis points on June 15, the largest rate hike since November 1994, as part of its effort to tame soaring inflation.

Federal Open Market Committee (FOMC) officials agreed to increase the Fed funds target range to between 1.5 percent and 1.75 percent. This is the rate that banks charge each other for overnight borrowing, affecting consumer borrowing, such as credit cards and home equity loans.