This is how the Fed's latest interest-rate hike will affect you

 The Federal Reserve on Wednesday said it is once again turning to its most powerful weapon to tamp down the hottest inflation in 40 years: Boosting interest rates. 

The central bank raised its benchmark interest rate by 0.75 percentage points, marking the fifth hike this year and the third consecutive increase of that size. Higher rates increase borrowing costs for businesses and consumers, who will now be coping with a triple dose of three-quarters of a percentage-point hike — a boost that could make a big impact on your budget.

The Fed is aiming for a delicate balance, seeking to tamp demand for purchases and thereby cool inflation while avoiding a recession. Federal Reserve Chair Jerome Powell has warned that failing to rein in inflation could result in "far greater pain." But already, Americans are paying a lot more than they were a year earlier for everything from home loans to credit cards due to the ongoing rate hikes. 

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