The Federal Reserve on Wednesday, March 22, enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end.
The rate hike marks the ninth consecutive increase in one year since the central bank began the current rate-raising cycle to combat rising prices. The increase takes the benchmark federal funds rate to a target range between 4.75% and 5%.
The Fed also said “additional policy firming may be appropriate” to lower inflation to the Fed’s 2% target, signaling that it’s close to winding down the hiking cycle and even the remaining quarter-point move it anticipates isn’t a sure thing. Learn more.