Federal Reserve approves largest interest rate hike since 1994

Jerome Powell.
(Image credit: Drew Angerer/Getty Images)

The Federal Reserve on Wednesday raised interest rates by three-quarters of a percentage point in a bold bid at taming the historic inflation plaguing the U.S. economy. It's the central bank's biggest move since 1994, The New York Times notes.

Markets expected the rate increase, which suggests "that Fed officials are serious about crushing price increases even if it comes at a cost to the economy," the Times writes. Chair Jerome Powell has remained optimistic the bank can successfully raise rates to tame inflation without triggering a recession — a maneuver known as a "soft landing."

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Brigid Kennedy

Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.