Fed Hikes Rates to Highest Since 2001, Hints at More to Come

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Fed Hikes Rates to Highest Since 2001, Hints at More to Come

The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter percentage point to a range of 5.25% to 5.5%, the highest level since 2001. The move was widely expected by economists and markets, and it comes as the Fed continues to battle inflation, which is running at a 40-year high.

In a statement, the Fed said that it “continues to expect that ongoing increases in the target range will be appropriate.” This suggests that the Fed is likely to continue raising rates at its upcoming meetings in September and November.

The Fed’s decision to raise rates is likely to have a number of implications for the economy. It will make it more expensive for businesses to borrow money, which could lead to slower economic growth. It will also make it more expensive for consumers to borrow money, which could lead to a slowdown in spending.

However, the Fed is betting that the benefits of raising rates outweigh the risks. By raising rates, the Fed hopes to bring inflation under control and prevent it from becoming entrenched in the economy.

The Fed’s decision to raise rates was met with mixed reactions from economists. Some economists said that the move was necessary to bring inflation under control, while others said that it could lead to a recession.

It remains to be seen how the Fed’s decision to raise rates will impact the economy. However, it is clear that the Fed is taking a serious approach to the fight against inflation.

US Fed Lifts Rates To Highest Since 2001 And Hints At More To Come

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