# Federal Reserve Raises Interest Rates Again to Combat Inflation ## The Federal Reserve raised its benchmark interest rate by 0.25% on Wednesday, marking the eighth rate hike since March 2022. ### The move was widely expected by economists and markets, as the Fed continues to battle high inflation. The increase brings the target range for the federal funds rate to 4.5% to 4.75%, the highest level since October 2007. The Fed's decision comes as inflation remains stubbornly high, with the consumer price index (CPI) rising 7.1% year-over-year in November. The Fed's target inflation rate is 2%. In a statement accompanying the rate hike, the Fed said that "ongoing increases in the target range will be appropriate" to bring inflation down to its target. The Fed's rate hikes have had a significant impact on the economy, raising borrowing costs for businesses and consumers. The housing market has been particularly hard hit, with mortgage rates rising sharply in recent months. The Fed's actions have also drawn criticism from some economists, who argue that the central bank is raising rates too quickly and could trigger a recession. However, the Fed has said that it is committed to bringing inflation down and that it will continue to raise rates as necessary. The Fed's next policy meeting is scheduled for March 21-22, 2023. At that meeting, the Fed is expected to decide whether to raise rates again.
Comments