1/ The Federal Reserve raised interest rates by 75 basis points – the biggest increase since 1994 – to tackle the fastest inflation in four decades. Chairman Jerome Powell called the move “an unusually large one,” adding that he expects either a 50 basis point or 75 basis point increase at the Fed’s July meeting. Economic data showed that inflation unexpectedly rose to 8.6% in May. The Fed now expect prices to increase 5.2% in 2022, compared to an earlier forecast for 4.3%, with inflation dropping to 2.6% in 2023 – still above its 2% target rate. On average, Fed policymakers expect interest rates to rise to 3.4% by December, and 3.8% by the end of 2023 – up from the 1.9% they projected in March. And, as a result of its policies, the Fed now expects the unemployment rate to increase to 3.7% this year and to 4.1% by 2024. “We’re not trying to induce a recession now,” Powell said. “Let’s be clear about that. We’re trying to achieve 2% inflation.” (Wall Street Journal / New York Times / NPR / Associated Press / Bloomberg / Washington Post / CBS News / Politico)

2/ The FDA’s independent vaccine advisers voted unanimously to recommend the authorization of two Covid-19 vaccines for children as young as 6 months old. The FDA is expected to authorize the shots within days, with vaccinations beginning as early as June 21. Pfizer’s three-dose vaccine would cover children 6 months through 4 years old, while Moderna’s two-dose vaccine would cover children 6 months through 5 years old. Meanwhile, every state but Florida has pre-ordered Covid-19 vaccine doses for children under 5. Florida missed yesterday’s deadline to pre-order, guaranteeing a delay in access for parents in the state. (Politico / New York Times / McClatchy DC /