The U.S. Federal Reserve announced the most aggressive interest rate increase in nearly 30 years on Wednesday, and said it is prepared to do so again next month in an all-out battle to drive down surging inflation.
Explaining the 0.75-percentage-point rate rise, Fed Chair Jerome Powell said it was "essential" to lower inflation, and policymakers "have both the tools we need and the resolve it will take to restore price stability on behalf of American families."
He stressed that the goal is to achieve that without derailing the US economy, but acknowledged there is always a risk of going too far.
The Fed's policy-setting Federal Open Market Committee raised the benchmark borrowing rate to a range of 1.5-1.75 percent, up from zero at the start of the year.
The super-sized move was the first 75-basis-point increase since November 1994.
