The Federal Reserve approving a third consecutive 75-basis-point hike
The FED approves 75-basis-point hike in an aggressive move to tackle the white-hot inflation that has been plaguing the US economy.
The supersized hike, which was unfathomable by markets just months ago, takes the central bank's benchmark lending rate to a new target range of 3%-3.25%.
That's the highest the fed funds rate has been since the global financial crisis in 2008.
Wednesday's decision marks the Fed's toughest policy move since the 1980s to fight inflation.
Federal Reserve Chairman Jerome Powell acknowledged the economic pain this rapid tightening regime may cause.
No one knows whether this process will lead to a recession or, if so, how significant that recession would be," Powell said Wednesday afternoon in a press conference following the central bank's policy announcement,
The median federal funds rate projection was revised upwards for 2022 to 4.4% from 3.4% in June. That number rises to 4.6% from 3.8% for 2023.
The rate was also revised higher for 2024 to 3.9% from 3.4% in June and is expected to remain elevated at 2.9% in 2025.