Federal Reserve raises interest rates 0.25% to highest since 2007 amid bank crisis

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Federal Reserve raises interest rates 0.25% to highest since 2007 amid bank crisis
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The Federal Reserve raised interest rates by another 0.25% as the central bank works to bring down elevated inflation while also grappling with the fallout from a global banking crisis and resulting market shocks.

by 0.25% on Wednesday as it battles stubborn inflation and a banking crisis which has pushed the central bank into taking its most significant emergency actions since the onset of the pandemic.

In its statement, the Fed said inflation remains elevated and that the central bank remains "highly attentive to inflation risks," while banking issues could cause credit conditions to tighten and weigh on economic growth."Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation. The extent of these effects is uncertain.

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