To combat inflation, the Federal Reserve raises interest rates for the first time since 1994.

On Wednesday, the Federal Reserve raised the benchmark interest rate by three-quarters of a percentage point (Picture: AFP)

In an effort to control inflation, the Federal Reserve raised interest rates for the first time since 1994.

The Federal Reserve hiked the benchmark interest rate by three-quarters of a percentage point on Wednesday in a bold move.

The increase in interest rates will raise the cost of borrowing for home purchases, automobile purchases, and other loans.

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