Fed raises key rate by quarter-point despite bank turmoil

March 22, 2023

WVUA 23 Digital,

Financial Markets Wall Street — The New York Stock Exchange, Wednesday, Dec. 14, 2022, in New York. The Federal Reserve raised interest rates by half a point on Wednesday. Stocks are off to a weak start on Wall Street as worries grow that the Federal Reserve and other central banks are willing to bring on a recession if that’s what it takes to get inflation under control. (AP Photo/Julia Nikhinson)

The Associated Press

WASHINGTON (AP) – The Federal Reserve extended its year-long fight against high inflation by raising its key interest rate a quarter-point despite concerns that higher borrowing rates could worsen the turmoil that has gripped the banking system.

“The U.S. banking system is sound and resilient,” the Fed said in a written statement.

At the same time, the Fed warned that the financial upheaval stemming from the collapse of two major banks is “likely to result in tighter credit conditions” and “weigh on economic activity, hiring and inflation.”

The Fed also signaled that it’s likely nearing the end of its aggressive series of rate hikes.

Read the full story on AP News right here.

3/22/2023 2:18:25 PM (GMT -5:00)

Categories: Regional and US News