Fed raises rates by another three-quarters of a percentage point, pledges more hikes to fight inflation (CNBC)

Fed raises rates by another three-quarters of a percentage point, pledges more hikes to fight inflation – By Jeff Cox (CNBC) / Sept 21, 2022

• The Federal Reserve raised benchmark interest rates by another three-quarters of a percentage point and indicated it will keep hiking well above the current level.
• The central bank has been looking to bring down inflation, which is running near its highest levels since the early 1980s.
• Fed officials signaled the intention of continuing to hike until the funds level hits a “terminal rate,” or end point, of 4.6% in 2023. That implies a quarter-point rate rise next year but no decreases.

The Federal Reserve on Wednesday raised benchmark interest rates by another three-quarters of a percentage point and indicated it will keep hiking well above the current level.

In its quest to bring down inflation running near its highest levels since the early 1980s, the central bank took its federal funds rate up to a range of 3%-3.25%, the highest it has been since early 2008, following the third consecutive 0.75 percentage point move.

Stocks seesawed following the announcement, with the Dow Jones Industrial Average most recently down slightly. The market swung as Fed Chairman Jerome Powell discussed the outlook for interest rates and the economy.

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