Another big Fed rate hike is here to battle inflation. Economy hangs in balance

Fed increases key interest rate by 0.75 points again.

taking its benchmark rate to a range of 2.25%-2.5%

Chair Jerome Powell said there will be a point where the Fed starts to slow hikes to assess their impact.

rate up to a range of 2.25%-2.5%

“We actually think we need a period of growth below potential in order to create some slack,” he said.

 rate hikes at this pace and magnitude have not occurred since the late 1980s.

which remains elevated at 9.1%, the highest in four decades.

The increase takes the funds rate to its highest level since December 2018.

Fed Fights Inflation With Another Big Rate Increase