The Federal Reserve on Wednesday decided on its largest interest-rate hike since November 1994, moving ahead with a 0.75 percentage point increase while signaling further aggressive tightening as the United States grapples with its highest inflation in decades.

Upon concluding a two-day meeting of the policy-setting Federal Open Market Committee, the central bank said it will lift its target range for the federal funds rate to 1.50 to 1.75%, following a 0.5-point increase in May and a 0.25-point rise in March.

In its new economic projection also released the same day, the Fed expected the benchmark borrowing rate to come to 3.4% at the end of 2022 and reach 3.8% in 2023, up from March projections of 1.9% and 2.8%, respectively. It also forecast slower economic growth through 2024.