The Federal Reserve raised a key interest rate by another three-quarters of a percentage point Wednesday to fight persistently high inflation, reinforcing the most aggressive pace of rate hikes since the 1980s in a move that also increases the risk of recession and adds to voters’ economic concerns just before the midterm election.
In announcing its sixth rate hike this year, the Fed’s Open Market Committee increased its benchmark rate to the 3.75%-4% target range.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said in a statement.