The Fed raises interest rates by 0.75% bringing the cost of money to a range between 2.25% and 2.50%.
For the US central bank this is the second consecutive 0.75% increase, in what is
the most aggressive move since the 1980s
.
The decision was made unanimously
To combat inflation, in addition to today's hike, the Fed raised rates by a quarter of a point in March, by half a point in May and by three quarters of a point in June.
The Fed reiterates that it is
"very alert" to inflation risks
.
"Inflation remains high reflecting the imbalances between supply and demand due to the pandemic. The war in Ukraine is creating further upward pressure on inflation and weighing on global economic activity," says the Fed. "We anticipate that. current rate hikes will be appropriate. The Fed is strongly committed to bringing inflation back to the 2% target. "