The Federal Reserve lifted the upper bound of the federal funds target range by 75 basis points or 0.75% in September 2022, stretching the Fed’s target interest rate to 3.25%.
This is the fifth such interest rate hike by the Fed in 2022, as the government continues to try to tame red-hot inflation. The first such raise in the federal funds benchmark rate occurred in March 2022, when the Fed raised it by 25 basis points. That was the first time the Fed had raising interest rates since 2018. All told, 2022 interest rate hikes now total 300 basis points.