What does the Fed's interest rate hikes mean for Americans?

But what do the Federal Reserve's interest rate hikes actually mean for hundreds of millions of Americans – Americans who have jobs, who buy things, who have bank accounts? In short, interest rates are the Fed's main tool to combat inflation. Inflation is driven by strong consumer demand.

Will interest rate hikes curb inflation?

The rate, which was near zero in March, has jumped 3.75 percentage points in the last eight months. That's the most aggressive string of rate hikes in decades, but so far it's done little to curb inflation. "Interest rates have risen at a whiplash-inducing speed, and we're not done yet," said Greg McBride, chief financial analyst at Bankrate.

Is a rate hike still an option?

In a news conference following the decision, Fed Chair Jerome Powell underscored that another rate hike remains an option — if the economy were to pick up strength and keep upward pressure on prices.

Did the Fed raise interest rates in June & July?

The central bank raised its benchmark interest rate by 0.75 percentage points Wednesday, matching hikes in June and July. The Fed has been boosting borrowing costs at the fastest pace in decades. But so far, its actions have done little to curb the rapid run-up in prices.