On Wednesday, the Fed raised its benchmark interest rate by an additional three-quarters of a percentage point.
This is the fourth time the central bank has raised rates this year.
Policy makers, facing the hottest price pressures in 40 years, lifted the target range for the federal funds rate to 2.25% to 2.5%..
The central bank's goal is to rein in inflation which peaked at 9.1% recently
Chair of Federal reserves of United States, Powell stressed that it was a time of great uncertainty in the economy.
On the other hand, the labor market has remained strong, adding 372,000 new jobs
Owing to higher interest rates, housing market has slowed down tremendously.
Amid chaos, Low Oil and gas prices proved to be a sigh of relief.
“It’s just better at capturing the inflation that people actually face in their lives,” Powell said.