Facts

• In its latest move to fight record high inflation, the Federal Reserve ("Fed") on Wednesday issued a 0.75% interest-rate hike, bringing its benchmark lending rate to between 3% and 3.25% — the highest seen since early 2008.
• This was the fifth rate hike since March and the third consecutive three-quarter point rise. The central bank indicated that further increases should be expected.
• According to new projections, rates are forecast to reach 4.4% by the end of the year before topping at 4.6% in 2023. This is up from the previous estimation of 3.4% and 3.8%, respectively.
• The updated projections also predict that the unemployment rate will rise from today's 3.7% to 4.4% next year, and the US GDP was revised down to 0.2% from 1.7% in June — well below the estimated revision to 0.7%.
• The news comes as inflation remained steady over the summer, with year-over-year prices rising slightly less than July's 8.5% to 8.3% in August, in large part due to falling gas prices. Prices for essential items have continued to climb, however, keeping inflation elevated.
• The Fed also signaled that it expects the personal consumption expenditure price index — its preferred measure of inflation — to fall from July's 6.3% to 5.4% by the end of the year and eventually reach its target of 2% by 2025.