(CapitalWatch, July 27, New York) The Federal Reserve decided to raise interest rates for its fourth consecutive meeting on Wednesday, matching June's hike of 0.75%. 

In an attempt to avoid a deep recession and combat inflation, the Fed has been implementing massive rate hikes. In May, it announced its first 50 basis-point interest rate in two decades. The 0.75% hike in June was the largest single-meeting increase since 1994.

Switching from two decades of only 0.25% raises and pandemic-era policies to talks of seeing interest rates between 0.75% and 1% has caused severe market whiplash.

The Fed pointed to Russia's war against Ukraine as the major driver to the U.S.'s economic troubles. 

According to a statement released Wednesday, the Fed, "anticipates that ongoing increases in the target range will be appropriate."

"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures," the statement said.

Short-term borrowing rates are comparable to 2019, between 2.25% and 2.5%.

Although inflation is surging, American unemployment has stayed low and recent reports on the U.S.'s international trade deficit show some recovery.

According to a report from the Bureau of Economic Analysis and Census Bureau, the U.S. monthly international trade deficit decreased in May 2022. The deficit fell from $86.7 billion in April to $85.5 billion in May. The goods deficit also decreased by $2.9 billion in May to $105 billion.

This is a reversal from the 22.3% increase in March to a record $109.8 billion. U.S. imports climbed 10.3% to $351.5 billion, while exports went up 5.6% to $241.7 billion.

Major indexes saw gains on Wednesday after the broad slide on Tuesday. The Nasdaq Composite Index got a 4.34% boost, up 502 points to 12,064. The Dow Jones Industrial Average rose 1.72%, up 545 points to 32,306. The S&P 500 went up around 2.7%, up 105 points to 4,026.

Oil also jumped Wednesday after reports of low inventories in the U.S. and Europe staved off worries caused by the rate hike and dropping demand. Brent crude rose $2.22 to $106.62 a barrel, and U.S. West Texas Intermediate crude gained $2.28 to $97.26.