Federal Reserve raises interest rates to 16-year high as fight to tame inflation continues

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Federal Reserve raises interest rates to 16-year high as fight to tame inflation continues
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BREAKING: Federal Reserve raises interest rates by 0.25% to a 16-year high, in latest effort to curb inflation.

The Federal Reserve announced Wednesday it was raising its key federal funds rate to more than 5% — a 16-year high — as it continued its firefight against persistent inflation.announcing the hike — the 10th-consecutive one since March 2022 — it omitted previous language that signaled more hikes were likely.

The latest decision comes at a fraught moment as high prices, high interest rates, and slowing growth would all seem to spell an economic downturn. "Provided the economic data slows only gently and inflation remains elevated, and the banking sector volatility is fairly contained, we think a June hike is still possible," she wrote."Indeed, we believe there is a higher risk of a rate hike in June than what the market is currently pricing in."

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