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MNI: Fed Raises Rates To Highest In 16 Years, More Possible

FED
  • (MNI)The Federal Reserve Wednesday raised interest rates by a quarter percentage point to its highest level since 2007, leaving the door open to more rate increases but suggesting officials have become less certain about how much more to tighten policy.
  • "In determining the extent to which additional policy firming may be appropriate to return inflation to 2% over time, the committee will take into account the cumulative tightening of monetary policy, the lags which monetary policy affects economic activity and inflation, and economic and financial developments,” the Fed said in its May meeting statement.
  • The increase brought the fed funds rate to a 5%-5.25% range that investors are hoping could be the peak for this cycle.

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