Federal Reserve Boosts Federal Funds Rate for Sixth Time in 2022

In its latest move to tame inflation, the Federal Reserve announced that it will raise the target range for the federal funds rate to between 3.75% and 4% on Wednesday, marking yet another 0.75% increase following similar actions in June, July and September, as well as the sixth overall increase this year.

In June, the Fed increased the federal funds rate to a range between 1.5% and 1.75%, which, according to Yahoo Finance, was “the largest move [the Fed] has made in a single meeting since 1994.” The Fed then followed up with an increase of the same magnitude in July, increasing the target range to 2.25% to 2.5%, followed by another 0.75% increase in late September.

 “The committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,” the Fed said in a statement.