The Federal Reserve raised the interest rates by 0.75% to 1.75%, the largest hike since 1994.
The government drastically reduced its forecast for 2022 economic growth to 1.7% increase in GDP, down from 2.8% in March.
On Thursday, the Bank of England is expected to announce its fifth rate rise since December, raising its rate above 1% for the first time since 2009.
Brazil, Canada and Australia have also raised their rates, while the European Central Bank has outlined plans to do so later this summer.
Why raise interest rates? By making borrowing more expensive, it slow economic activity, cooling demand and in theory, easing price pressures.
