US central bank ponders huge rate hike to combat price surge

Washington (AFP) – The US Federal Reserve is set to announce a sharp increase in borrowing costs on Wednesday amid the troubling acceleration of inflation, and forecasters now expect officials to opt for the biggest rate hike in nearly three decades. Until recently, the central bank seemed set to again increase the benchmark interest rate by 0.5 percentage points, but a resurgence of consumer and producer prices in May has fueled growing speculation of a 75-basis-point hike. Economists say the rapidly changing situation means the Fed is behind the curve and needs to react strongly to prove its…

Read More