The Fed Raises Interest Rates By A Quarter Point Despite Ongoing Banking Concerns

The Fed Raises Interest Rates By A Quarter Point Despite Ongoing Banking Concerns

After a two-day meeting on the well-being of the U.S. economy, the Fed raised interest rates by a quarter point, hoping to combat inflation. The rate hike on Wednesday marks the ninth rate hike in a row. 

Chairman of the Federal Reserve, Jerome Powell, noted that there are "serious problems" being faced by a small number of banks, not specifying exactly what those problems are.

The Fed mentioned in a statement that "additional policy firming may be appropriate", sending mixed signals to investors. 

Jerome Powell added that "our banking system is sounds and resilient", in a positive message to the public. 

[ongoing report]

by Julia Whiteford

 

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