The Federal Reserve continued its efforts to curb rising inflation on Wednesday, announcing that it will raise the target range for the federal funds rate to between 3% and 3.25%, marking yet another 0.75% increase following similar actions in June and July, as well as the fifth 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%.
In a statement, the Fed said, “Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices and broader price pressures.”
