This week, the Federal Reserve plans to step up its fight against inflation with another massive interest rate increase, potentially deepening the already deteriorating U.S. economic downturn.
The Fed is under increasing pressure to act more aggressively to rein in demand and curb the rise in consumer prices
because inflation unexpectedly increased to a new 40-year high in June and the job market is still expanding at a robust clip.
Employers have announced layoffs or hiring freezes, more Americans are applying for jobless benefits, and the housing market is slowing down.
Consumer price index growth in June from a year earlier was 9.1%, exceeding expectations for even higher inflation.
The rate of inflation is currently at its highest level since December 1981.
