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Fed raises interest rates by 0.75 points to fight inflation

Chair Jerome Powell on Sept. 21 said the Federal Reserve is raising its interest rate by three-quarters of a percentage point to tackle inflation. (Video: The Washington Post)

The Federal Reserve will not back down from its fight against inflation even though aggressive moves to slow the economy will inevitably bring pain to households and businesses nationwide, the central bank’s chief said Wednesday as the bank raised interest rates yet again.

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“We have got to get inflation behind us,” Federal Reserve Chair Jerome H. Powell said. “I wish there were a painless way to do that. There isn't.”

The message came after the central bank raised rates by 0.75 percentage points for the third time this year and released new economic projections showing a significant slowdown in the economy later in 2022 and 2023. People are suffering from high inflation — especially more vulnerable households, Powell said — and they’ll ultimately suffer more, and for longer, if the Fed flinches in its commitment to pulling prices back down.

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