Federal Reserve raises interest rates by 0.75%

The Federal Reserve on Wednesday announced it is raising interest rates by 0.75% in an attempt to battle record levels of inflation and signaled that more increases are yet to come.

The interest point range is now 3.00%-3.25% and new projections show its policy rate will rise to 4.40% by the end of 2022 before topping out at 4.6% next year, according to Reuters.

The next rate cut is not predicted to come until 2024.

"Job gains have been robust in recent months, and the unemployment rate has remained low," the bank's board of governors said after raising interest rates. "Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures."

The central bank also raised interest rates by 0.75% in July. However, consumer prices still increased 0.1% from July to August.