The Federal Reserve continues to hold an aggressive position on sticky inflation. The central bank recently approved a much-anticipated interest rate hike of 25 basis points, pushing their benchmark borrowing cost to the highest level in more than 22 years.
During its most recent meeting in July, Federal Open Market Committee (FOMC) Chair Jerome Powell announced that the Federal Reserve will continue its monetary tightening, raising the rate to a target range of 5.25% – 5.5%.
The last time rates were this high was when George Bush was still president.
However, the central is not yet finished with its aggressive monetary policy, and there is currently a 20% to 30% chance of yet another 25 basis point rate hike in its upcoming meeting in September according to a federal watchdog, CME Group.
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