The United States Federal Reserve makes history by raising interest rates for the fourth consecutive time by 0.75%

The United States Federal Reserve announced on Wednesday an increase of 0.75% in interest rates for the fourth consecutive time, as part of its aggressive strategy to reduce the uncontrolled inflation that affects the country’s economy.

The sharp increase leaves the Federal Reserve’s benchmark interest rate with a new target range of 3.75% to 4%. This is the highest Fed rate since January 2008.

The decision, which comes after a two-day meeting of the Federal Open Market Committee, represents the strongest action by the Federal Reserve since 1980. It is also likely to complicate the economic outlook for millions of American businesses and households by further driving up the cost of the loans.

Although Federal Reserve Chairman Jerome Powell has emphasized that persistent and entrenched inflation represents greater economic pain than a recession, he also acknowledged the difficulties that come from tightening monetary policy.

“I wish there was a painless way to do it. There isn’t,” he said last September.