Fed raises interest rates to 5.5%

by Renata


As many economists expected, the Federal Reserve chose again to raise interest rates after opting to not do so last month.

The move bumped interest rates from 5.25% to 5.5%, which, as we mentioned on Tuesday’s broadcast, is now at its highest level in over two decades. Many economists are hoping that this will be the final time the central bank raises rates, and several, including Financial Issues radio host Shana Burt, believe the Fed should not have raised rates this time around.

Market analysts believe that, with a strong last several weeks on Wall Street, the nation could be moving away from its inflationary woes, but some wonder if the central bank is only contributing to the problem with this most recent hike.

Wednesday’s rate increase marked the 11th hike since March of 2022.