According to a report from Reuters, the Federal Reserve implemented a quarter-percentage-point increase in interest rates on Wednesday. The decision was attributed to the ongoing issue of elevated inflation and marks the highest U.S. central bank policy rate seen in 16 years.
This rate hike represents the 11th increase in the past 12 meetings held by the Federal Reserve. Consequently, the benchmark overnight interest rate is now set within the range of 5.25 – 5.50 percent. The accompanying policy statement indicated the possibility of another rate increase in the future, indicating the Fed’s vigilance in addressing inflationary pressures.