US central bank ponders huge rate hike to combat price surge

Washington (AFP) – The US Federal Reserve is poised to raise borrowing costs Wednesday amid the troubling acceleration of inflation, with the only question being whether officials will opt for the biggest hike in nearly three decades or a smaller step up. The central bank seemed set to increase the benchmark interest rate again by 0.5 percentage points, but a resurgence of consumer and producer prices in May has fueled growing speculation of a 75-basis-point hike. While some economists continue to argue that such an aggressive step would indicate rising panic among policymakers who are usually…

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