June 10, 2023

The Federal Reserve raised its benchmark interest rate by 0.75 percentage points on Wednesday, the fifth time the US central bank has raised rates this year as it tries to cut rates. Red-hot inflation.

The Fed’s target interest rate is now between 3% and 3.25%, the highest level in 14 years. The bank’s rate-setting body noted that inflation remained “elevated” and said it was “extremely attentive to inflation risks.”

Inflation has emerged as the most pressing economic issue this year, with the cost of everything from housing to groceries outstripping wages and hold down consumers

Fed Chair Jerome Powell is scheduled to hold a news conference at 2:30 pm ET. His comments will be parsed for indications that the Fed expects to moderate the pace of rate hikes in the coming months or continue to significantly tighten credit until it is certain that inflation is easing.

In August, Powell warned that the Fed’s fiscal tightening would “bring some pain” to Americans. Wall Street has explained that the central bank will keep raising rates even if economic growth hits, including the onset of a recession.

This is a developing story. The Associated Press contributed reporting.

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