Fed Approves Quarter-Point Rate Hike, Signals More Increases Likely

The Federal Reserve approved a quarter-percentage-point interest-rate increase and signaled plans to raise rates again next month to continue lowering inflation.

The decision Wednesday followed six consecutive larger rate rises, including an increase of a half point in December and 0.75 point in November.

Officials nodded to recent improvement in inflation readings but didn’t significantly alter their guidance around coming rate moves in a policy statement released after the meeting.

“The committee anticipates that ongoing increases” in interest rates “will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive,” said the statement, using the same language included in policy statements since last March.