Federal Reserve raises interest rate by another 75 basis points

The Fed stays aggressive against persistently high inflation in the U.S. and raises the target interest rate by another 0.75 percentage points.

The Fed remains steadfast in tackling the persistent high inflation in the U.S. and raises the key interest rate by another 0.75 percentage points.

It sticks to its course: the U.S. Federal Reserve (Fed) continues to raise rates. As in September, Fed Chair Powell raises the key rate by another 0.75 percentage points to a total of 4 percent. Since the start of the year, the world's top central bank has lifted rates from 0.25% to the current 4% since the first base-rate move in January 2022.

This puts the rate at its highest level since 2008.

With this move, the Fed chair is trying to counter the persistently high inflation at 8.2% in the latest reading. In initial reaction, Bitcoin rose about 0.5% toward $20,558. This confirms the Fed's unchanged hawkish stance and again challenges investors' hopes for looser monetary policy.

Given that the Fed Board majority leans Republican, there won't be an election-year boost for Democrats under President Biden. The size of the rate hike could influence the course of the U.S. midterm elections next week on Tuesday, November 8.