Washington, DC (CNN Business)–The US Federal Reserve made history on Wednesday, agreeing to a third straight hike of 75 basis points in a powerful move to tackle the severe inflation plaguing the US economy.
The massive rally, which might not be understood by the markets just months ago, is taking the central bank’s benchmark lending rate to a new target range of 3% to 3.25%.
This is the highest interest rate since the global financial crisis in 2008.
Wednesday’s decision represents the Fed’s most aggressive policy move in its fight once morest inflation since the 1980s, which was another period of skyrocketing prices.
It also likely causes economic pain to millions of American businesses and families by increasing the cost of borrowing for things like homes, cars and credit cards.
