The Fed's move boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level since early 2008.

The policymakers also signaled that by early 2023, they expect to have further raised rates much higher than they had projected in June.

The central bank's action followed a government report last week that showed high costs spreading more broadly through the economy, with price spikes for rents and other services worsening even though some previous drivers of inflation, such as gas prices, have eased.

By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.

Fed officials have said they're seeking a ``soft landing,'' by which they would manage to slow growth enough to tame inflation but not so much as to trigger a recession.

Yet economists increasingly say they think the Fed's steep rate hikes will lead, over time, to job cuts, rising unemployment and a full-blown recession late this year or early next year.

Chair Jerome Powell acknowledged in a speech last month that the Fed's moves will ``bring some pain'' to households and businesses. And he added that the central bank's commitment to bringing inflation back down to its 2% target was ``unconditional.''

Falling gas prices have slightly lowered headline inflation, which was a still-painful 8.3% in August compared with a year earlier.

Declining gas prices might have contributed to a recent rise in President Joe Biden's public approval ratings, which Democrats hope will boost their prospects in the November midterm elections.

sity economist Laurence Ball and two economists at the International Monetary Fund.