Federal Reserve Chairman Jerome Powell announced on Wednesday the 0.75 point rate hike along with a forecast for more interest rate bumps ahead.

The short-term borrowing rate now ranges from 1.5% to 1.75%, but that number could double by year’s end.

The war in Ukraine, bottlenecks in the supply chain, and labor and fuel shortages have all worked to fan the flames of rising prices. The Fed has struggled to douse raging inflation—which reached 8.6 percent last month compared to a year ago. 

Will raising rates work? The rate hikes have the potential to slow down spending and level out skyrocketing prices, but they also risk throwing the economy into a recession.

Powell said he believes the economy can endure these interest rate changes. Stock indexes ticked up slightly after news of the latest rate increase on Wednesday.

The S&P 500 slipped to 21% below its record high in January and stayed there until markets closed on Monday.

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.