US Fed raises interest rates again by quarter point and signals more hikes ahead

The US Federal Reserve extends its fight against high inflation by raising its key interest rate by a quarter point, its eighth hike since March. And the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

The central bank’s latest move put its benchmark short-term rate in a range of 4.5% to 4.75%, its highest level in about 15 years. Though smaller than its previous hike — and even larger rate increases before that — the latest move will likely further raise the costs of many consumer and business loans and the risk of a recession.

In a statement, Fed officials repeat language they have used since March that says, “ongoing increases in the (interest rate) target range will be appropriate.” That is seen as a signal that they intend to raise their benchmark rate again when they next meet in March and perhaps in May as well.