Fed Lifts Rate By Quarter-Point And Signals More Hikes Ahead

WASHINGTON (AP) – The Federal Reserve extended its fight against high inflation Wednesday by raising its key interest rate by a quarter-point, its eighth hike since March.

The Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

The central bank’s latest move put its benchmark short-term rate in a range of 4.5% to 4.75%, its highest level in about 15 years.

Though smaller than its previous hike – and even larger rate increases before that – the latest move will likely further raise the costs of many consumer and business loans and the risk of a recession.