WATCH LIVE: Federal Reserve Chair Powell holds news conference following interest rate meeting

The Federal Reserve is widely expected to raise interest rates by a quarter of a percentage point on Wednesday, in a move aimed at curbing inflation

The increase would be the first since 2018, and it would mark a significant shift in policy for the central bank, which has kept interest rates near zero since the start of the COVID-19 pandemic.

The decision to raise rates comes as the US economy faces its highest inflation in four decades. The consumer price index, a measure of the cost of goods and services, rose by 7.5% in January, the largest increase since February 1982.

The Fed is raising rates in an effort to cool inflation by making it more expensive to borrow money.

This, in turn, should lead to a decrease in spending and economic growth, which should eventually help to reduce inflation.

However, the Fed is also aware that raising rates too quickly could lead to a recession. The central bank is therefore likely to take a gradual approach to raising rates, with the goal of bringing inflation down without causing too much damage to the economy.

In addition to its interest rate decision, the Fed is also expected to release new economic projections on Wednesday.

These projections will provide insight into the Fed's outlook for the economy and inflation over the coming years.

The Fed's news conference will begin at 2:30 p.m. ET. You can watch it live on the Fed's website or on C-SPAN.