Battling inflation that remains at four-decade highs, the Federal Reserve said Wednesday it hiked its key interest rate by another 0.75%.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said in its statement Wednesday. It added it is “strongly committed to returning inflation to its 2% objective.”
The rate hikes this year have unfolded against the backdrop of a consumer price index that has remained elevated. In September, it clocked in at 8.2% on an annual basis. Food and energy price increases were higher. Even stripped of those two items, whose price swings tend to be more volatile, the index saw its largest increase since 1982.
