Fed raises interest rates another half point, slowing pace of hikes

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Fed raises interest rates another half point, slowing pace of hikes
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BREAKING: Fed raises interest rates another half point, slowing pace of hikes

The Fed's headquarters building in Washington. Photo: Graeme Sloan/Bloomberg via Getty Images

The Fed's policy committee, following a two-day meeting, raised their federal funds rate target range to between 4.25% and 4.5%. In a statement announcing the move, the committee said it anticipates “ongoing increases in the target range will be appropriate” to bring down inflation. Two officials anticipate GDP will contract between Q4 2022 and Q4 2023, implying those officials think a recession is more likely than not.The central bank has sent financial markets reeling and raised the odds of a recession with its campaign of rapid interest rate increases — including four straight meetings featuring 0.75 percentage point rate hikes, the most in modern times.

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