In its latest move to tame inflation, the Federal Reserve announced that it will raise the target range for the federal funds rate to between 3.75% and 4% on Wednesday, marking yet another 0.75% increase following similar actions in June, July and September, as well as the sixth overall increase this year.
In June, the Fed increased the federal funds rate to a range between 1.5% and 1.75%, which, according to Yahoo Finance, was “the largest move [the Fed] has made in a single meeting since 1994.” The Fed then followed up with an increase of the same magnitude in July, increasing the target range to 2.25% to 2.5%, followed by another 0.75% increase in late September.
“The committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,” the Fed said in a statement.
