Fed Attacks Inflation With Largest Rate Hike Since 1994

The Federal Reserve raised interest rates again Wednesday by 0.75%.

The Federal Reserve has announced its largest interest rate hike since 1994 — a bigger increase than it had previously signaled and a sign that the central bank is struggling to restrain stubbornly high inflation.

The central bank raised its benchmark short-term rate by three-quarters of a percentage point, far larger than the typical quarter-point increase, to a range of 1.5% to 1.75%. This also likely forecasts additional large rate hikes through the end of the year.

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