US Fed's biggest rate hike since 1994, Wall Street sounds a recession call

Analysts increasingly see a recession looming in the US following the Federal Reserve’s biggest increase in interest rates since 1994 and signs of weaker consumer spending. 

The Fed hiked its policy rate by 75 basis points Wednesday to a range of 1.5% to 1.75%, as officials intensified their battle against inflation that’s remained stubbornly high. 

Wells Fargo & Co. now forecasts a “mild recession” starting in mid-2023, as inflation becomes more entrenched in the economy and eats into consumer spending power -- and as the Fed takes more aggressive steps to address it. Meanwhile, Moody’s Analytics said that chances of a soft landing are lower.