The Federal Reserve on Wednesday raised interest rates another 25 basis points – or 0.25% – amid the banking crisis.
“Inflation pressures continue to run high,” Fed Chair Jerome Powell said. “The process of getting inflation back down to 2% has a long way to go.”
CNBC reported:
The Federal Reserve raised interest rates by a quarter of a percentage point, bringing the benchmark funds rate to 5% to 5.25%. In its post-meeting statement, the central bank appeared to soften its language on future rate increases, removing a line on “additional policy firming.” In his press conference, however, Chair Jerome Powell noted that the policy-setting committee thinks it will take time for inflation to come down and it would not be appropriate to cut rates.
The banking crisis stems from the Federal Reserve’s decision to hike interest rates seven times in 2022 to fight Bidenflation.