Fed raises rates 25 basis points

Fed hikes rates by 25 basis points and signals more increases are coming!

The Federal reserve just raised interest rates 25 basis points, this makes it the eighth consecutive rate hike, from 4.5% to 4.75%. This is the highest it has been since 2007.

Interest rates are used as a tool to combat inflationary problems. Inflation peaked at 9.9% and and has since came down to 6.5%, this still remains exponentially high considering the Feds inflation target is below 2%.

More rate hikes will continue to come as the Fed has to face the realization that inflation is going to stay elevated with supply chain issues, Ukraine and Russian war, as well as poor policy management.