The Federal Reserve raised its short-term interest rates by a quarter-percentage point, bringing its benchmark rate to a new range of 4.5% to 4.75%, the highest since October 2007. While Fed Chairman Jerome Powell acknowledged reduced inflation, he also indicated that the central bank could execute a few more rate hikes to bring inflation down to its target of 2%.
“It would be very premature to declare victory, or to think that we’ve really got this,” said Powell. The disinflation process, he said, is in its early stages, but the “job is not fully done.”
