The Federal Reserve has raised its benchmark interest rates three-quarters of a percentage point. It marks the most aggressive hike since 1994 and is an effort to bring down inflation rates, which have been impacting consumers and farmers everywhere.
By raising these borrowing rates, the Fed is making it more expensive to take out an auto, business loan or mortgage. Consumers and businesses will then presumably spend less, slowing and cooling inflation, according to AP News.
The chairman of the group acknowledges this is an unusually large increase, and he does not expect moves of this size to be common in the future.
Related:
Double-Edged Sword: Interest rate hikes could help bring down food prices
What could be the effects of rising interest rates on agriculture?
Economy Concerns: Interest rates are seeing the biggest hike in two decades
Story via Christopher Rubager with AP News
