Federal Reserve Raises Interest Rates for the First Time Since 2018
Posted on 03/16/2022
The Federal Reserve on Wednesday approved its first interest rate increase in more than three years (the first increase since December 2018). Federal Reserve lifted its benchmark Federal Funds Rate by 0.25%, to a target range of between 0.25% and 0.50%.
The Federal Reserve noted that the economic outlook remains “highly uncertain” in the face of the war in Ukraine.
The increase in rates could start a process of raising borrowing costs in the hopes of taming inflation.
The rate rise was approved with only one dissenting vote. St. Louis Fed President James Bullard wanted a 50 basis point increase.
Keywords: Federal Reserve System.