The Federal Reserve hiked interest rates dramatically again on Wednesday in an effort to combat the persistent inflation burdening the American economy.
The fed funds rate, the central bank’s benchmark lending rate between banks, was increased three-quarters of a percentage point for the fourth consecutive time, taking the rate to 3.75-4 percent, the highest level since January 2008.
Fed Chairman Jerome Powell's will address the press at 2:30 p.m. ET on Wednesday to explain the decision and the outlook for the U.S. economy.
The September consumer-price index report from the Bureau of Labor Statistics showed inflation at 8.2 percent year-over-year and 0.4 percent month-over-month.
Core inflation, which is measured by the average price of a household basket of good subtracting the more volatile components of food and energy, continued to rise in September. The food index soared and gasoline prices are not expected to decline quickly given persistent energy-market pressures from Russia’s war in Ukraine and the OPEC bloc’s move to reduce petroleum production.
Given the two consecutive GDP contractions in the first two quarters of this year, the U.S. economy technically has been in a recession.
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