Fed increases benchmark rate as it fights raging inflation pressures squeezing American economy.
This is the fourth rate increase this year by the Fed, as it seeks to cool inflation without wrecking the world's largest economy.
It was noted that the US economy is slowing, but it signaled that borrowing costs will continue to go up.
Despite his plummeting approval ratings, Biden continues to support the Fed in its war against inflation.
Inflation must return to two percent in order for Fed Chair Jerome Powell to justify raising interest rates.
As stagflation slowed the economy in the 1980s, the Fed tightened its monetary policy aggressively.
To prevent a global recession that would reverberate around the world, policymakers must quell inflation before it becomes too entrenched.
Powell's press conference at 2:30 pm (1830 GMT) on Thursday should provide insight into whether the Fed will remain aggressive or ease up.
It appeared that policymakers acknowledged that some factors were beyond their control.
As home prices rise, housing sales have slowed five straight months due to rising mortgage rates.
Thursday's first estimate of GDP for the April-June period will show a contraction of 1.6 percent.
While economists expect moderate growth, many are predicting a downward trend.