The Federal Reserve raised its key interest rate by .75% yesterday, the largest increase in nearly three decades. Additional significant rate increases are expected to come as the Fed works to fight inflation.

The higher rate affects consumer and business loans by as much as 1.75%. Policymakers are expected to raise the rate to a range of 3.25 to 3.5% by the end of 2022, the highest since 2008.

In response to inflation reaching 8.6%, its highest in four decades, the central bank is working to tighten credit and slow the growth of inflation with continued rate increases.