EL PASO, Texas (KTSM) – In a widely expected move, the Federal Reserve announced an interest rate hike of .75%, lifting their benchmark funds rate to a range of 1.5% to 1.75%

In a hike that hasn’t been seen since 1994, the Federal Open Market Committee (FMOC), announced the move shortly before 2 p.m. (EDT)

Consumers and businesses have become increasingly concerned about the state of the economy and expect inflation to keep rising above current levels, which can serve as a self-fulfilling prophecy without quick Fed action. 

“Not only is the Federal Reserve faced with the risk of inflation becoming embedded into consumer and business expectations, but it must also factor market behavior into its policy decisions,” said Joe Brusuelas, chief economist at tax and audit firm RSM, on Tuesday. 

CNBC reports that the statement was approved by all FOMC members except for Kansas City Fed President Esther George, who preferred a smaller half-point increase.

As this is a developing story, look for updates throughout the afternoon on KTSM.com and in our newscasts at 5,6, and 10.

Nexstar Wire contributed to this story

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