Federal Reserve hikes interest rates 0.25 percentage point

Baku, February 2, AZERTAC

The Federal Reserve is raising its benchmark interest rate a quarter of a percentage point, officials with the central bank said on Wednesday, its eighth consecutive hike as policy makers try to subdue inflation, according to CBS News.

The latest increase in the federal funds rate — what banks charge each other for short-term loans — is smaller than the Fed's 0.5 percentage point increase in December as well as a string of three-quarter point moves over the course of 2022.

With the latest increase, the Fed's target interest rate is set in a range between 4.50% and 4.75% — its highest level since late 2007.