Federal Reserve Chair Jerome Powell speaks during a news conference Wednesday, Dec. 14, 2022, at the Federal Reserve Board Building, in Washington. (AP Photo/Jacquelyn Martin)
Federal Reserve Powell
WASHINGTON (AP) — The Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year and signaling more hikes to come.
But the Fed announced a smaller hike than it had in its past four meetings at a time when inflation is showing signs of easing. Though lower than its previous three-quarter-point hikes, the latest move will further increase the costs of many consumer and business loans and the risk of a recession.
The policymakers also signaled that they are prepared to raise their benchmark rate by an additional three-quarters of a point and leave it there through 2023. Some economists had expected that the Fed would project only an additional half-point increase.
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