Federal Reserve hikes interest rates for fourth time this year

SAN DIEGO (KUSI) – The Federal Reserve on Wednesday raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its most aggressive drive in more than three decades to tame high inflation.

The Fed’s move will raise its key rate, which affects many consumer and business loans, to a range of 2.25% to 2.5%, its highest level since 2018.

The interest rate hike are pricing middle class Americans out of homes they were able to afford just a few months ago, but the federal reserve says its necessary to combat inflation and the sharp rise in prices of goods.

KUSI’s Matt Prichard reports on what Fed Chairman Reserve Powell said when he announced yet another rate hike, and why the Chairman says he doesn’t think we are in a recession.

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