Fed hikes interest rate by 75 basis points, marking highest increase since 1994

On Wednesday, Federal Reserve officials announced that they would be raising their main interest rate by three-quarters of a percentage point, marking the highest increase since 1994.

According to Bloomberg, the Fed signaled that they would continue to aggressively hike this interest rate in an attempt to rein in some of the highest levels of inflation the country has seen since the 1980s.

The Fed has reportedly projected raising this to 3.4 percent by the end of the year, "implying another 175 basis points of tightening this year," Bloomberg reported. This marks the highest interest rate since 2008.

According to Fox Business, officials had estimated in March that the rates would hit 2.5 percent by the end of the year.

Economists had previously predicted a 50-basis point hike, which is double the typical size of a hike.