Inflation
InflationiStock

As US inflation continues to soar at historic rates, the Federal Reserve announced the second major recent rate hike on Wednesday, sparking fears that its plan to curb inflation could trigger a recession.

The Fed said it will increase rates by 75 basis points (75 percent) as part of its attempt to tame runaway inflation. The Federal Open Market Committee announced the measure after a two-day meeting, the New York Post reported.

The move was the second 75 point hike in the last two months, with the first raise the highest increase since 1984.

The Fed’s move was a response to June inflation figures that showed costs on good had increased 9.1 percent in June, the worst numbers since November 1981, with consumers hurting and looking to lawmakers and the Fed to respond.

The June data led to rumors that the Fed would implement a historic full percentage point increase but Fed Governor Christopher Waller denied that would happen.

Waller responded to the June data release by throwing his support behind a 75 basis points increase in response to June inflation numbers, which he called a “major league disappointment.”

The move by the Fed comes as talk of a recession looms over the Biden administration with economic data to be released on Thursday likely to show two consecutive quarters of decreased GDP, which is the measure for determining whether the economy is in recession.