The Federal Reserve took the most aggressive action since 1994 announcing that they would raise rates by 75 basis points (3/4%) taking the fed funds rate to between 150 - 175 basis points.

Today the Federal Reserve began the June FOMC meeting which will conclude tomorrow. Up until last week’s CPI report, it was widely anticipated that the Federal Reserve would raise its Fed funds rate by ½%.

All of the financial markets are continuing to react to last week’s CPI inflation report. The CPI increased by 1% in May taking year-over-year inflation higher by 8.6% which is the largest gain since December 1981.