With prices rising at their fastest pace in a generation, the Federal Reserve is ratcheting up its fight against inflation.
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On Wednesday, the Fed raised its benchmark interest rate by an additional three-quarters of a percentage point.
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This is the fourth time the central bank has raised rates this year.
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It follows an increase of the same size in June — rate hikes at this pace and magnitude have not occurred since the late 1980s.
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Despite these fast and furious moves, the central bank has its work cut out for it. Its goal is to rein in inflation without kickstarting a recession.
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"The labor market is extremely tight, Fed Chair Jerome Powell said at a news conference, where he explained the "unusually large" move up in rates.
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He and his colleagues are trying to fight inflation by tackling demand. They are pushing up the cost of of credit
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they are trying to deal with a jobs market the Fed chair has called "unsustainably hot," where wages are rising fast because many businesses are paying more to find workers.
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In a statement, the Fed said that some parts of the economy — like spending and production — have weakened.
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