The Fed approves biggest rate hike since 1994 to curb inflation

Less than a week after the Consumer Price Index hit its highest level in more than 40 years, the Federal Reserve is taking action.

inflation at the gas pump
High gas prices are shown as a pedestrian waits to cross the street in Los Angeles, Thursday, June 16, 2022. Associated Press
inflation at the gas pump
High gas prices are shown as a pedestrian waits to cross the street in Los Angeles, Thursday, June 16, 2022. Associated Press

The Fed approves biggest rate hike since 1994 to curb inflation

Less than a week after the Consumer Price Index hit its highest level in more than 40 years, the Federal Reserve is taking action.

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The Federal Reserve on Wednesday hiked its benchmark interest rate by 0.75%, the biggest increase since 1994. More interest rate hikes are expected in the coming months as the Fed seeks to curb the highest inflation in 40 years.

Reset checks in with an expert to better understand inflation and what’s being done to rein it in.

GUEST: David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution