With soaring inflation and fears of a recession hanging over the United States, The US Federal Reserve has raised interest rates by 0.75 percentage points.

This week’s hike is the biggest rise since 1994, and was made in response to a 40 year high in inflation. It is expected that this increase will affect Australia, who are also fighting high inflation rates by increasing interest rates.

Image: Image – Shutterstock – DesignRage

Produced By: Roderick Chambers

Featured In Story: Tim Harcourt, Industry Professor and Chief Economist, Institute for Public Policy and Governance, University of Technology

First aired on The Wire, Thursday 16 June 2022