Fed raises interest rates 0.25%, intensifying inflation fight despite cooling prices
The Federal Reserve has imposed its most aggressive series of rate hikes in 40 years. The Federal Reserve raise d its benchmark interest rate another 0.25% on Wednesday, reviving its i NFL ation fight despite a significant cooldown of price increases in recent months. The rate hike brought the Fed's benchmark interest rate to a 22-year high of between 5.25% and 5.5%. Inflation has fallen significantly from a peak last summer, but remains at a level one percentage point higher than the Federal Reserve's target of 2%. Speaking at a press conference in Washington, D.C., on Wednesday, Fed Chair Jerome Powell downplayed the progress achieved so far in reducing inflation. "Inflation has moderated somewhat since the middle of last year," Powell said. "Nonetheless, the process of getting inflation back down to 2% has a long way to go." The Fed remains open to raising rates again at its next meeting in September, depending on the economic data released over the m...