Fed and BoE set for 75-bps hikes on inflation

A jogger runs past the US Federal Reserve in Washington, DC on August 18, 2022. (Photo by MANDEL NGAN / AFP)

NEW YORK: The Federal Reserve (Fed) and Bank of England (BoE) may both unleash 75-basis point (bps) interest-rate hikes in the coming days in a show of aggression toward inflation, even in the face of mounting recession risks.

The transatlantic double act illustrates the trade-off confronting central banks as evidence of an impending global economic contraction becomes harder to ignore, even as inflation lingers.