Fed Raises Key Rate By Half-Point And Signals More To Come

The US Central Bank has raised interest rates by 0.5%, marking the seventh increase this year. This move follows four consecutive 0.75% hikes. While these hikes have increased borrowing costs, they have also helped reduce inflation from 9.1% in June to 7.1% now. However, the Fed's target is 2%, indicating more rate hikes are likely. Fed Chairman Jerome Powell suggests that future rate decisions will depend on inflation progress and financial conditions. The rate increases aim to slow economic growth and reduce prices but may lead to job losses and higher costs for big-ticket items like homes and cars. There is also a risk of a recession, though the Fed acknowledges the uncertainty of such an outcome.

What was the recent interest rate hike announced by the US Central Bank?

How many rate hikes have occurred this year according to the text?

What is the Federal Reserve's target inflation rate mentioned in the text?

What are some of the ripple effects of increasing interest rates mentioned in the text?

What potential economic consequence did the Fed chairman acknowledge?