The Federal Reserve ramped up its attack on rapid inflation on Wednesday, approving its biggest interest rate increase since 2000, detailing a plan to shrink its massive bond holdings and signaling that it will continue working to cool the economy as it tries to tamp down the fastest price increases in four decades.
Yet investors found a reason for relief. While the Fed raised interest rates half a percentage point and its chair, Jerome H. Powell, said similarly large increases would be “on the table” at the Fed’s upcoming meetings, he shot down the idea that policymakers were considering an even larger move, as some investors had feared.
