WASHINGTON — In the most aggressive back-to-back interest rate increases since the early 1980s economic crisis, the Federal Reserve on Wednesday announced another hike of three-quarters of a percentage point and signaled more to come in its effort to beat back inflation despite the risk of a recession.
The Fed’s hefty increase in its benchmark rate, which will mean higher interest rates on credit cards, home and auto loans and other such purchases, seeks to curb the strong consumer demand and spending that have been a major factor in driving up prices.
Fed Chairman Jerome H. Powell, at a news conference after the interest rate announcement, said the economy is clearly slowing, with consumer activity, business investment and housing markets all softening. But noting the still-robust job growth, he said that he doesn’t think the U.S. is in a recession and that the Fed plans to keep raising interest rates over the next several months to tamp down inflation, although at a slower pace.
