The Fed delivers biggest interest rate hike in decades to combat surging inflation

Federal Reserve Chair Jerome Powell looks on after taking the oath of office for his second term at the helm of the central bank at the Fed's headquarters in Washington, D.C., on May 23. The Fed raised interest rates by three-quarters of a percentage point on Wednesday. (Olivier Douliery/AFP via Getty Images)

The Federal Reserve escalated its battle against inflation Wednesday, announcing the largest interest rate hike in 28 years as the central bank struggles to regain control over soaring consumer prices.

The Fed raised its benchmark interest rate by three-quarters of a percentage point — the biggest hike since 1994. That follows a quarter-point increase in March and a half-point jump in May.