Jerome Powell, chair of the Federal Reserve, has spoken about the 0.75% rise in interest rates declared. He said the move was necessary because “inflation is much too high.”

The US central bank is aggressively increasing rates at levels unseen since the mid-1990s as it struggles to tamp down soaring prices, which rose by an annual rate of 9.1% in June, the fastest inflation rate since 1981.

When mortgage rates, car loans, and credit cards are more costly, the theory goes, people are less inclined to spend, and inflation comes down.

Powell said: "My colleagues and I are strongly committed to bringing inflation back down. And we’re moving expeditiously to do so.
We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses."
Powell added: "The economy and the country have been through a lot over the past two and a half years and have proved resilient.
We must bring inflation down to our 2% goal if we are to have a sustained period of strong labor market conditions that benefit all."

This isn't healthy for America. Something has to be done as soon as possible to decrease the cost of living and an increase in interest rate will only worsen the troubles of the people.

Source: The Guardian