Fed Raises Interest Rates by 0.5 Percentage Point to 15-Year High
Federal Reserve policymakers voted on Dec. 14 to raise the benchmark federal funds rate by 50 basis points to a target range of 4.25–4.5 percent, the highest level since late 2007.
The Fed’s policy-making arm, the Federal Open Market Committee (FOMC), has boosted interest rates seven times since March, totaling 425 basis points.
During a post-meeting press conference, Fed Chair Jerome Powell said there’s still a long way to go in the fight against inflation. Most officials now anticipate raising rates above 5 percent next year, which is higher than previously projected.
“I wouldn’t see us considering rate cuts until the committee is confident that inflation is moving down to 2 percent in a sustained way,” Powell said….