Federal Reserve Chair Jerome Powell explains the Fed’s rationale for a 75 basis point rate hike rather than a 100 point hike. This is the second 75 point hike of 2022. The announcement was made on July 27, 2022.
JEROME POWELL: We did judge that a 75 basis point increase was the right magnitude in light of the data and in the context of the ongoing increases in the policy rate that we’ve been making. I’d say that we wouldn’t hesitate to make an even larger move than we did today if the committee were to conclude that that were appropriate.
That was not the case at this meeting. There was very broad support for the move that we made. You mentioned the June meeting. We had said many times that we were prepared to move aggressively– more aggressively if inflation continued to disappoint. And that’s why we did move to a more aggressive pace at the June meeting, as we said we would do. At this meeting, we continued at that more aggressive pace, as inflation has continued to disappoint in the form of the June CPI reading.