On Wednesday, the Federal Reserve raised interest rates yet again. The short-term federal funds rate was raised by 25 basis points, or 0.25%, bringing it to a target range of 5.25%-5.50%. Since March 2022, the Federal Open Market Committee (FOMC) the central bank's rate-setting group, has been increasing interest rates in an attempt to combat inflation. They began with a quarter-point increase, followed by a 50 basis-point hike in May last year.
This marks the 11th rate increase, since March 2022, and more rate hikes are still on the table. The central bank reiterated prior language from its policy statement saying “some additional policy firming" may be warranted, which could mean that the FOMC could be raising rates at their next meeting.
