The Federal Reserve raised interest rates by 75 basis points on Wednesday, the largest increase since 1994. The move is an effort to combat inflation, which is running at a 40-year high.
The Fed's decision to raise interest rates was widely expected by economists. The central bank has been under pressure to take action to cool the economy and bring down inflation.
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The 75 basis point increase is the largest single increase in the Fed's benchmark interest rate since 1994. The Fed also raised its target range for the federal funds rate to 3.25% to 3.5%.
The Fed's decision is likely to have a number of implications for the economy. It will make it more expensive for businesses to borrow money, which could lead to slower economic growth. It will also make it more expensive for consumers to borrow money, which could lead to lower spending.
The Fed's decision to raise interest rates is a significant step in its effort to combat inflation. However, it is unclear whether the increase will be enough to bring down inflation to the Fed's target of 2%.
The Fed's decision to raise interest rates was met with mixed reactions. Some economists believe that the increase is necessary to bring down inflation, while others believe that it could lead to a recession.
The Fed is expected to continue raising interest rates in the coming months. The central bank has signaled that it is prepared to take "further action as appropriate" to combat inflation.