The Federal Reserve raised interest rates again, by 75 basis points, and said more hikes were on the way to counter the surge in prices - an aggressive stance that has made markets fear recession in recent sessions.
This is the third consecutive increase of 0.75 percentage points by the Federal Open Market Committee (FOMC), which has continued its action to contain inflation, which has risen to the highest levels of the last 40 years.
The increase brings the benchmark rate to 3.0-3.25% and the FOMC said it "expects that continued increases will be appropriate".
Wall Street has turned the tide by becoming negative.
The spike in prices is putting pressure on American households and businesses and has become a political burden for President Joe Biden, who faces congressional mid-term elections in early November.
But a downturn in the world's largest economy would be an even more damaging blow to Biden, the Fed's credibility, and the world at large.
Fed experts also predict a sharp slowdown in US GDP growth to just 0.2% this year, but a return to expansion in 2023, with annual growth of 1.2%.
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The Federal Reserve Building