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Warren on Powell: 'Very worried' the Fed will tip economy into recession
01:48 - Source: CNN
New York CNN Business  — 

Just like misery, inflation loves company. And as price increases linger near 40-year highs, the United States has plenty of it.

A perfect storm of stimulus cash during the pandemic, a strong demand for goods, geopolitical chaos and supply chain kinks have led to a surge in prices globally.

In Great Britain, inflation stands at just under 10%, the highest in the G7. In Turkey and Argentina, annual inflation rates are forecast to clock in at a whopping 80%.

The Federal Reserve announces its next interest rate decision later on Wednesday, but central banks across the world are also hiking rates in an attempt to slow the economy and bring prices back down to earth. At least 75 have lifted their benchmark interest rates in the past year, increasing the price of credit across the world. Here’s a look at what some of them are doing.

United States Federal Reserve

Current annual consumer inflation rate: 8.3%

Benchmark interest rate: 2.25-2.5%

Last rate hike: 75 basis points in July

Start of hiking cycle: March 2022

The Federal Reserve is the most important central bank in the world — the US dollar has been the world’s primary reserve currency for more than 70 years. That’s why meetings of the Federal Open Market Committee, where monetary policy is enacted, are so closely watched across the globe.

In recent months the Fed has taken a hawkish stance. In July, it instituted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25% to 2.5%. The bank is largely expected to institute another 75 basis point hike on Wednesday.

Federal Reserve Board Chairman Jerome Powell speaks during a news conference in Washington, DC, on July 27, 2022. The US Federal Reserve on July 27 again raised the benchmark interest rate by three-quarters of a percentage point in its ongoing battle to tamp down raging price pressures that are squeezing American families.