Fed hikes rates by 0.75 points again — but signals smaller increases ahead

The Federal Reserve imposed another super-charged interest rate hike Wednesday, but officials signaled a move to smaller increases is in store as fears mount that inflation-fighting efforts will prompt a recession.

The rate-making Federal Open Market Committee hiked its benchmark rate by three-quarters of a percentage point following a two-day meeting. The latest hike moved the Fed’s target funds rate range to between 3.75% and 4% — the highest since 2008.

During his post-meeting conference, Fed Chair Jerome Powell signaled the central bank could begin dialing back the pace of its increases...