Fed Raises Interest Rates to Highest Level in 15 Years

The Federal Reserve on Wednesday raised its benchmark interest rate half a point to the highest level in 15 years.

For Context: It's the Fed's seventh interest rate hike of the year, but a smaller one than the .75 percentage point increases agreed on at each of its last four meetings. The benchmark federal funds interest rate now has a range of 4.25% to 4.5%, the highest it's been since December 2007.

Key Quotes: "Inflation data received to far for October and November show a welcome reduction in the monthly pace of price increases," Fed Chair Jerome Powell said at his post-meeting news conference. "But it will take substantially more evidence to have confidence that inflation is on a sustained downward" trajectory.

How the Media Covered It: The news was a top story from major news sources across the political spectrum Wednesday afternoon. Some left-rated sources framed the news more positively than center- and right-rated sources did. CNN Business called the move "a smaller increase than in recent months and an acknowledgment that inflation is finally easing." Conversely, CNBC said the move shows "that the fight against inflation is not over despite some promising signs lately." Fox Business reported that the Fed is "slowing its campaign to cool the economy amid early signs that stubbornly high inflation is finally starting to ease," and that the half-point hike is "still large by historical standards" despite being smaller than other recent ones.