The Federal Reserve on Wednesday approved another 0.75% interest rate hike in a bid to combat unyielding inflation. The agency said it hopes to bring inflation to the 2% mark. Jerome Powell, chair of the Federal Reserve said the actions are aimed at ensuring price stability.

"Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy," he said in a press conference Wednesday.

Inflation, now at a four-decade high, grew 8.2% for year ending September, reaching a high not seen since 1982. Stubborn inflation has compelled regulators to raise interest rates several times this year, bringing rates to a 14-year high.

The high interest rates have hit the housing market hard, with mortgage rates soaring to a 20-year high last week.

Powell said the housing market was overheated in the early days of the pandemic, a trend that has since cooled off. However, he recognized the impact of the high interest rates on people and families. The Fed looks likely to stick with hiking rates for the foreseeable future. Powell said that there can be lags in monetary policy and results take time.

"Unfortunately, we're likely to feel the pain of a slower economy before we see the gain of lower inflation," Greg McBride, chief financial analyst at Bankrate said.

Powell added that it was too early to consider a pause on rate hikes.

"We will stay the course until the job is done," he said.