The Federal Reserve on Wednesday increased the short-term interest rate 0.75% for the fourth consecutive time, in an effort to slow persistently high inflation. 

The announcement was made by Fed Chairman Jerome Powell at the conclusion of the Federal Open Market Committee’s two-day policy meeting. 

The increase will raise lending rates to 3.75%-4%, up from 3%-3.25% and result in the highest rate since January 2008.

On the concern that high interest rates will downshift the economy into recession, Powell has said high inflation is worse.

Projections last month showed that the interest rate will rise to 4.4% by the end of the year with the next rate cut not expected until 2024.

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