The US Federal Reserve on Wednesday announced it was raising its benchmark interest rate by 75 basis points for the third month in a row.
The move was part of the Fed’s attempt to squash record high inflation but threatens to cause economic pain for millions of Americans and small and medium-sized businesses.
Repeated rate increases may also put a damper on the nation’s economic growth, FOX Business reported.
The 75 basis point increases in the last three months have been the most aggressive interest rate increases since 1994, with inflation this year at a level not seen in four decades.
The central bank’s policymakers reportedly voted unanimously to approve the latest large increase.
The key benchmark federal funds rate is now between3% to 3.25%, at the highest since the financial crash of 2008.
After a two day meeting, Fed officials are expected to continue raising rates into 2023 until they hit 4.6 percent, the highest level since 2008.