The Fed raises interest rates again by 0.75% in a historic move to curb inflation

US interest rates soar 1:20

(CNN) ––

The United States Federal Reserve raised interest rates again by 0.75% in its race against time to curb historical levels of inflation.

The Fed's decision comes just a month after, in its most aggressive move since 1994, it raised rates by the same percentage.

This consecutive increase of 0.75% marks the first time in the Fed's modern history that it has raised interest rates to that level twice in a row.

This contrasts with what was his policy during the last three decades of lowering or raising interest rates by an average of 0.25%, preferring to drive the economy at a slow speed.

However, the very high inflation forced the central bank to take more aggressive measures to curb it. 

• This is what the Federal Reserve rate increase means for your salary

Now, the fact that the Fed is taking this strong action shows confidence in the health of the labor market.

However, the speed with which interest rates are expected to rise underscores his growing concern about the rising cost of living.

High inflation is likely to force the Federal Reserve to raise interest rates several more times in the coming months.

Bank officials may even resort to large additional rate hikes in a bid to stem inflation.

What does the Fed raise mean?

In the US they prepare for the increase in interest rates 2:32

The Fed's hike will impact millions of American businesses and households, raising the cost of home, car and other loans, as well as credit cards, to force a slowdown in the economy.

What's more, mortgage rates have basically doubled in the last year.

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Families are not only dealing with the price impact of their purchases, they are also under pressure from higher financial costs.

But that is precisely what the Fed wants: to cool red-hot demand to give supply a chance to recover and ease prices.

News in development...

With information from Matt Egan, Alicia Wallace and Lucy Bayly, all of CNN. 

InflationFederal Reserveinterest rates