The Federal Reserve implemented the largest hike to its benchmark interest rate since 1994 on Wednesday as officials frantically seek to tamp down the decades-high inflation hitting household budgets, the NY Post reports.

The rate-making Federal Open Market Committee announced the hike of 0.75%, or 75 basis points, at the conclusion of its two-day meeting. The hike moved the benchmark short-term rate to a range of 1.5% to 1.75%.

The 0.75% hike was in line with revised expectations after last week’s release of the Consumer Price Index for May. The federal data showed inflation accelerated to a higher-than-expected 8.6% last month, the sharpest rate since December 1981.

Source: Matzav