Washington, DC (CNN Business) – The US Federal Reserve made history Wednesday, accepting a third consecutive 75 basis point hike in a powerful move to address severe inflation plaguing the US economy.
The massive rally, which the markets could not understand just a few months ago, is driving the central bank benchmark lending rate to a new target range of 3% to 3.25%.
This is the highest interest rate since the global financial crisis in 2008.
Wednesday’s decision represents the Fed’s most aggressive political move in its fight against inflation since the 1980s, which was another period of skyrocketing prices.
It also likely causes economic pain to millions of American businesses and families by increasing the cost of borrowing for things like homes, cars, and credit cards.
–
