The Federal Reserve is taking its "most aggressive" action in 40 years to slow inflation, according to The Wall Street Journal.
Five things to know:
1. The Consumer Price Index rose 7 percent in December year over year and since then has continued to increase to 7.9 percent higher last month compared to February 2021.
2. The Fed plans to boost its benchmark federal-funds rate by 0.25 percent to 0.5 percent, which would be the first increase since 2018.
3. After the first increase, the Fed aims to increase interest rates six more times this year to lift the rate to nearly 2 percent by the end of 2022.
4. Jerome Powell, Federal Reserve chair, said in a news conference that high inflation may persist with record job openings and wage growth. He said the tight labor market was at an "unhealthy level."
5. The interest rate increase will mean home buyers will pay a little more per month for their mortgage, and some credit card rates could go up, according to The Wall Street Journal.