The Fed's hot pause summer gets an ice bath: Interest rates rise again

Federal Reserve Chairman Jerome Powell attends a meeting at the Spain's Central Bank in Madrid, Spain, Thursday, June 29, 2023. In the U.S., Powell and the central bank are trying to navigate a "soft landing" for the economy. (Manu Fernandez/AP)

Pack up the umbrella and the beach towel and head back to the car: The Fed's Hot Pause Summer is officially over.

The Federal Reserve announced on Wednesday it would raise interest rates a quarter percentage point (or 25 basis points), to a 22-year high. It marks a return to the long, steady climb interest rates have been on for the last year, as the Fed attempts to beat back inflation.