Federal Reserve raises its key rate for 11th time by a quarter-point in its drive to slow inflation

The Associated Press

WASHINGTON (AP) – The Federal Reserve raised its key interest rate for the 11th time in 17 months, a streak of hikes that are intended to curb inflation but that also carry the risk of going too far and triggering a recession.

The move lifted 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 rate hikes, the Fed’s latest move could lead to further increases in the costs of mortgages, auto loans and credit cards.

Though inflation has eased, Wednesday’s hike reflects the concern of Fed officials that the economy is still growing too fast for inflation to fall back to their 2% target.

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7/26/2023 3:54:17 PM (GMT -5:00)