The Federal Reserve was expected to announce an interest rate hike this week, but nobody knew by exactly how much. Earlier today. the Fed raised interest rates by a hefty three quarters of a percentage point. This is the most aggressive rate hike in almost 30 years and sends a clear message that the Fed is taking inflation seriously and desperately wants to cool the economy. The Fed says they are \"strongly committed" to an ination goal of 2%. The Federal Reserve has a high degree of influence when it comes to monetary policy and the overall health of the economy. lnstituting interest rate hikes is just part of the role they play in macroeconomic policy. Officials also changed ttciieir economic growth outlook for 2022. A GDP gain of 2.8% was forecast in March but was downgraded to 1.7% to ay. The stock market, which has been volatile at best recently, rallied after the news. Wall Street sees the Fed's aggressive measure against inflation as a positive sign. \"The Fed nailed it. Recognizing that hiking more now means less later, the Fed demonstrated its resolve to tame inflation without undermining its employment mandate," said Ronald Temple, head of U.S. equity at Lazard Asset management. \"While some spectators argued for an even steeper hike, the Fed understood that the combination of rate hikes and QT already takes the US into uncharted territory with significant risks to growth. The hike today sent exactly the right message to markets.\" (CNBC) Hopefully a recession will be avoidable after all