Federal Reserve’s Long-Awaited Rate Hike Is Here: Powell Announces 0.25% Increase

The Federal Reserve announced a 0.25% interest rate hike on Wednesday—the first increase since 2018, while also forecasting a more-than-expected six additional hikes this year, as the central bank looks to combat surging inflation and ease concerns about the economic impact from Russia’s invasion of Ukraine.

The Federal Reserve raised interest rates by a quarter percentage point—the first increase in more than three years—as it looks to address surging inflation, which remains at 40-year highs, up 7.9% from a year ago.