The Federal Open Market Committee (FOMC), the Fed's policy-making body, voted 8-1 to raise the target range for the federal funds rate to 0.75% to 1%.
The Fed also signaled that it expects to continue raising rates at a rapid pace in the coming months.The Fed's decision to raise rates is a sign that it is concerned about the recent surge in inflation.
Inflation has been running at its highest level in 40 years, and the Fed is trying to bring it back under control.
Raising interest rates makes it more expensive to borrow money, which can help to slow down the economy and bring down inflation.
The Fed's decision to raise rates is likely to have a number of effects on the economy.It is likely to lead to higher mortgage rates, which could make it more difficult for people to buy homes.
It is also likely to lead to higher car loan rates, which could make it more difficult for people to buy cars.Higher interest rates could also lead to slower economic growth.
However, the Fed believes that raising rates is necessary to bring down inflation and keep the economy healthy in the long run.The Fed's decision to raise rates is likely to be controversial.
Some people believe that the Fed is raising rates too quickly and could slow down the economy too much.Others believe that the Fed is not raising rates quickly enough and is not doing enough to combat inflation.