The Federal Reserve made history on Wednesday, approving a third straight 75 basis point hike in an aggressive move to tackle red-hot inflation that has been battering the US economy.
The huge increase, which was inconceivable to markets just a few months ago, brings the central bank’s benchmark interest rate to a new target range of 3%-3.25%. That’s the highest fed funds rate since the global financial crisis in 2008.
Wednesday’s decision marks the Fed’s toughest policy move in its fight against inflation since the 1980s, another period of skyrocketing prices. It’s also likely to cause economic hardship for millions of American businesses and households by increasing the cost of borrowing for things like houses, cars and credit cards.
This story is developing and will be updated.