Policymakers at the US Federal Reserve believe they have achieved their goal of seeing most Americans find jobs. However, they have struggled to fulfill the other part of their mandate: stable prices. So, on Wednesday, they once again raised interest rates.

The policymakers introduced their fourth straight hike of three-quarters of a percentage point. That lifted the prime lending rate to 4 percent, a level last seen in 2008.

Fed Chair Jerome Powell said high inflation imposes "significant hardship" and erodes purchasing power "for those least able to meet the higher costs of essentials like food, housing and transportation."

Powell and his colleagues have been unable to bring inflation below 8 percent. Over time, they want it drop to 2 percent.
They believe higher rates will bring prices down by discouraging consumers from spending. However, they have to guard against going too far. They have seen higher borrowing costs cause a slowdown in the housing market and shoppers pull back from buying things they don't need.

Powell said, at some point, it will become appropriate to slow the pace of the increases in interest rates. He added that that point may come soon.