Facing the worst inflation in the United States in some 40 years the Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points for the third time in a row.
In a press conference, Fed Chairman Jerome Powell said policymakers are determined to bring down inflation even if it means some economic pain.
Powell himself said no one knows whether this process will result in a recession or not.
Shin Se-byuck reports.
The Federal Reserve went ahead with its third straight interest rate increase of three-quarters of a percentage point on Wednesday.
Along with the rate increases, Fed Chair Jerome Powell even hinted that further hikes are likely high with at least one more move of that size this year.
"The FOMC is strongly resolved to bring inflation down to two percent and we will keep at it until the job is done."
The Fed's latest quarterly summary of policymaker projections shows U.S. central bankers expect to raise the policy rate, now in the 3 to 3.2-5 percent range after Wednesday's 75-basis-point increase, to 4.4 percent by the end of this year and to 4.6 percent by the end of next year.
Despite the Fed's aggressive move, things still look rather grim.
Powell, speaking to press after the Fed's policy statement, said there isn't "a painless way" to solve the inflation issue as levels reached the highest level in four decades.
The Chair had already said it would be "very challenging" to achieve a so-called "soft landing" for the economy.
Meanwhile, wild swings driven by the Fed's latest policy announcement prompted Wall Street's main indexes to fall sharply on Wednesday.
The S&P 500 lost 1.7 percent to slump to its lowest level since mid-July after wavering between gains and losses.
The Dow Jones Industrial Average also plunged 522 points to a little under 30,200 marking a 1.7 percent fall.
The Nasdaq composite lost 1.8 percent.
Pundits say the Fed's overly aggressive rate hikes could heighten the risk of recession.
Shin Se-byuck, Arirang News.