The US Federal Reserve (Photo: Xinhua)

This is the 11th rate increase since the Fed began its inflation fight last March and comes just one month after the central bank hit pause in order to assess the state of the economy after the failures of three regional banks.

Fed chairman Jerome Powell said that the Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people.

“My colleagues and I are acutely aware that high inflation imposes significant hardship, as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation. We are highly attentive to the risks that high inflation poses to both sides of our mandate, and we’re strongly committed to returning inflation to our 2 percent objective,” said Powell.