In a statement released on Wednesday, the Federal Reserve announced its intention to implement a 0.75 percentage point increase to interest rates. The recent increases are the fastest rate of interest rate rise since the Fed began using it as a tool to tackle inflation in the early 1990s. The Federal Reserve's latest interest rate hike, its fourth since March, will further raise costs for homes, cars and credit cards, though many borrowers may not feel the impact immediately. https://t.co/VKRjl659qs — The Associated Press (@AP) July 27, 2022Why do interest rates affect inflation? The Biden administration believed that the Federal Reserve’s ability to adjust interest rates is one of the most powerful tools to affect inflation.

Source: New York Times July 27, 2022 19:23 UTC