The Federal Reserve announced this afternoon that it is raisin interest rates again, but this time the increase will be only 0.25%, a drop from the previous hikes of 0.5% and 0.75%.
The announcement came during a news conference that featured Fed Chairman Jerome Powell. Powell said that price stability is important and without it the economy will not work for anyone. He said the today’s lower interest rate will be enough to continue the slowing of the economy.
Today’s hike, the first of 2023, marks the eighth time since March of last year that the Fed has raised rates in its campaign to combat inflation. The Fed has been targeting bringing inflation down to 2%. It has eased somewhat to 6.5% in December. In June of last year, inflation was running at 9.1%.
