In order to slow the economy and lower inflation, the US Fed increased the benchmark interest rate by 0.75 percent.

Additionally, it increased the federal funds rate's target range to 3%-3.5%.

In order to reduce the size of the Fed's balance sheet, the central bank also reaffirmed its resolve to continue selling down its holdings of Treasury securities, agency debt, and agency mortgage-backed securities.

The Fed chair also noted that the expenditure and manufacturing sectors of the economy have deteriorated. "Job increases have been solid in recent months, and the unemployment rate has stayed low," he did point out.

What was said at the meeting by the Fed chief?

Jerome Powell, the chairman of the Federal Reserve, stated that although it would depend on forthcoming economic statistics, another exceptionally big interest rate increase could be required in September.

He said that it was still too early to predict whether the Fed will scale down the rate rises at its September meeting. But he said that it would be wise to slow rate increases at some point in order to gauge their effects.

He reaffirmed the commitment of the central bank to eventually reduce inflation from its current 9.1 percent level to 2 percent. 

Additionally, the chairman said that there had been a noticeable slowdown in economic growth during the second quarter.