Five ways the Fed interest rate hike will impact Americans’ wallets

The Federal Reserve is showing no signs of letting up in its aggressive fight to combat rising prices, tightening wallets as it hikes interest rates at the fastest pace in decades to get a handle on red-hot inflation.

The central bank bumped its baseline interest rate range on Wednesday by another 75 basis points. The Fed raised rates by the same amount last month in a bid to counter soaring costs, marking its first rate hike of that magnitude in nearly thirty years.

Raising rates is the Fed’s primary tool to combat rising inflation as it seeks to tamp down demand by making it harder for consumers to borrow. But the actions taken by the Fed in recent months has fueled concern among some economists of a looming recession.