The Federal Reserve raised its key interest rate Wednesday by a quarter point. It’s the eleventh rate hike in 17 months as part of the central bank’s ongoing effort to curb inflation.
Wednesday’s move raised the Fed’s benchmark short-term rate from roughly 5.1% to 5.3% — its highest level since 2001. Coming on top of its previous hikes, the Fed’s latest action could lead to further increases in the costs of mortgages, auto loans, credit cards, and business borrowing.
Speaking at a news conference, Fed Chair Jerome Powell was noncommittal about any expectations for future rate hikes, AP reports. Since it began raising rates in March 2022, the Fed has often telegraphed its upcoming action. This time, though, Powell said the Fed’s policymakers may or may not raise rates again at their next meeting in September.
