The Federal Reserve (Fed) announced yesterday (June 15) to raise interest rates by three-quarters of a percentage point (75 basis points), the most aggressive hike over the past 28 years, in order to lower the soaring inflation which disturbed the economy. The decision was in line with market expectations.

Fed Chairman Jerome Powell said that the 75 basis point increase is not common, and he expected that there will be an increase of 50 or 75 basis points at the July meeting.

The Fed officials also greatly cut the economic growth outlook for this year. The GDP was expected to rise by 1.7% this year, lower than March’s 2.8%.