Fed raises interest rate by a quarter percentage point, expects continued hikes

The US Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday, but kept promising “continued increases” in borrowing costs as part of its unresolved battle against inflation.

“Inflation has eased a bit, but it remains high,” the US central bank said in a statement that marked explicit acknowledgment of the progress made in slowing the pace of price increases from 40-year highs reached last year. last year.

Russia’s war in Ukraine, for example, still adds to “elevated global uncertainty,” the Fed said.

But monetary policymakers abandoned the language of earlier statements citing war and the COVID-19 pandemic as direct contributors to rising prices.

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