The Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years. But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive.
In a statement after its latest policy meeting, the Fed said that while the banking system is "sound and resilient," the upheaval in the financial system could slow borrowing, spending and growth. It reiterated that the impact of pullback in bank lending "remains uncertain."
