US Fed unleashes another big rate hike but hints at a pullback soon

The Federal Reserve pumped up its benchmark interest rate on Wednesday by three-quarters of a point for a fourth straight time but hinted that it could soon reduce the size of its rate hikes.

The Fed's move raised its key short-term rate to a range of 3.75 per cent to 4 per cent, its highest level in 15 years. It was the central bank's sixth rate hike this year a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.

But in a statement, the Fed suggested that it could soon shift to a more deliberate pace of rate increases. It said that in coming months it would consider the cumulative impact of its large rate hikes on the economy. It noted that its rate hikes take time to fully affect growth and inflation.

Those words indicated that the Fed's policymakers may think borrowing costs are getting high enough to possibly slow the economy and reduce inflation. If so, that would suggest that they don't need to ..