Interest Rates | Weekly Extract

Week of June 13-17

Rate hike of 75 basis points in the U.S.

The Federal Reserve delivered a 75 basis point interest rate hike, the largest increase since 1994, and Jerome Powell signaled another big move next month, intensifying the fight to contain rampant inflation.

The Fed is targeting 2% inflation as measured by the Commerce Department's personal consumption expenditures price index, which rose 6.3% in the 12 months through April, near a 40-year high.

With the S&P 500 falling through a bear market amid growing fears of a recession. Investors are increasingly concerned about the Fed's ability to achieve a "soft landing" (reducing inflation without plunging the economy into a recession) as it aggressively tightens monetary policy.

Interest rate hike 50 basis points in Switzerland

In Switzerland, inflation reached 2.91TDP3T in May and the Swiss National Bank believes it is likely to remain at an elevated level for the time being.