Despite a recent pullback in inflation, the Federal Reserve raised its key interest rate by a quarter point Wednesday and signaled another hike is at least on the table, if not likely, in coming months amid a solid economy.
The move nudged the federal funds rate to a range of 5.25% to 5.5%, the highest level in 22 years.
In a statement after a two-day meeting, the Fed repeated that “determining the extent of additional policy firming (rate increases) that will be appropriate” to lower inflation to the Fed’s 2% target will hinge on inflation as well as economic and financial developments, among other factors.
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