The Federal Reserve on Wednesday boosted interest rates by three-fourths of a percentage point, the latest in a series of aggressive steps to tame stubborn inflation.
The Federal Open Market Committee (FOMC) — the panel of Fed officials responsible for monetary policy— hiked its baseline interest rate by 0.75 percentage points Wednesday to a span of 3 to 3.25 percent.
It is the fifth Fed rate hike since March and the third consecutive FOMC meeting ending with a 75 basis point hike.
The Fed had long been expected to issue another 75 basis point hike in September as inflation continued to rise through much of the summer and linger near four-decade highs. While monthly price growth has slowed slightly, the annual inflation rate of 8.2 percent in August, according to the consumer price index, was close to levels not seen since the late 1970s.
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But inflation has fallen little since the Fed’s rate hikes began, and officials have pledged to keep ramping up rates until they see clear signs of slowing price growth — a process Fed Chairman Jerome Powell acknowledged would bring “pain.”
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BREAKING: Fed hikes rates by 75 basis points for third time this year https://t.co/GY25NOmfUu pic.twitter.com/St5mTAP3zW
— The Hill (@thehill) September 21, 2022
Federal Reserve Chair Powell: "Today the [Federal Open Market Committee] raised its policy interest rate by three-quarters of a percentage point and we anticipate that ongoing increases will be appropriate. We are moving our policy stance […] to return inflation to 2%." pic.twitter.com/CEIexOAKkp
— The Hill (@thehill) September 21, 2022
Federal Reserve Chair Powell: "This era has been noted for very long expansions. We've had three of the four longest in measure history since we got inflation under control. That's not an accident. When inflation is low and stable, you can have these […] 10-year expansions." pic.twitter.com/TMriFHjJ3h
— The Hill (@thehill) September 21, 2022
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