UPDATE: Fed hikes interest rates by 3/4 percent

WASHINGTON, D.C. (CNN) – The Federal Reserve raised interest rates three quarters of a percent Wednesday.

It’s a move many analysts started to expect Friday, when an inflation report showed price hikes have been more severe than originally thought.

Before that, the prevailing thought was the Fed would raise rates by a half percent, which is still a bold move for the central bank.

It generally moves interest rates in quarter percentage intervals.

The half percentage increase seen last month was the first time the Fed had made a move that drastic in more than two decades.

A three quarter percent hike hasn’t been seen since 1994.

These rate hikes will make borrowing money for homes, cars and other purchases more expensive for consumers.

The hope is doing so will help bring inflation under control, though that hasn’t happened yet.

Fed Chairman Jerome Powell has said he plans to keep raising rates until prices come down.

Some analysts are predicting another three-quarters-of-a-point increase next month.

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