By Blake Haas
BLOOMINGTON – The Federal Reserve is hiking interest rates to stave off inflation for the second time in a row.
On Wednesday, Federal Reserve Chairman Jerome Powell announced the hike of 75 basis points or 0.75%.
“Wall Street doesn’t like to be surprised,” added John Ruedi with Savant Wealth Management. “When they (the Federal Reserve) were making the case with 75 basis points, and that’s what their expectations were. Had it raised a percent, it might of scared some folks thinking we were in a tougher situation than we really are.”
The June Consumer Price Index (CPI), a measure of the nation’s inflation, showed inflation roaring at 9.1% over the past year.
“So all in all, that’s pretty good news from the Fed (Federal Reserve), and the markets certainly liked it,” said Kevin Kingston, a Financial Advisor at Savant Wealth Management.
At the market close on Wednesday, the S&P 500 closed up 102 points, while the Dow Jones Industrial Average finished up 436 points.
Blake Haas can be reached at Blake.Haas@Cumulus.com.
