Fed approves first interest rate hike in three years, six more to follow
The Fed’s move corresponds with a hike in the prime rate and will immediately raise the financing costs for many forms of consumer borrowing and credit
By Yashasvini Razdan
Published - Mar 16, 2022, 08:36 PM ET
Last Updated - Feb 20, 2024, 10:58 PM EST
• The interest rate will now range between 0.25%-0.5%
• Core inflation outlook rose to 4.1% while overall inflation was up by 4.3%
The US Federal Reserve raised the short-term benchmark interest rate for the first time in three years by a quarter percentage point or 25 basis points on Wednesday.
The Federal Open Market Committee (FOMC) has kept the benchmark interest rate anchored near zero since the beginning of the COVID-19 pandemic. The Fed’s decision will now throw the rate between 0.25%-0.5%.
