WASHINGTON - The Federal Reserve raised its key interest rate again on July 26 - the 11th time in 17 months - a streak of hikes intended to curb inflation but may carry may go too far and trigger a recession.
The move lifted the Fed’s benchmark short-term rate from roughly 5.1% to 5.3% - its highest level since 2001.
Coming on top of its previous rate hikes, the Fed’s move could lead to further increases in mortgages, auto loans, credit cards and business borrowing.
Though inflation has eased, this latest reflects the Feds' concern the economy is growing too fast.
Consumer confidence is the highest it's been in two years. Americans keep spending and businesses keep hiring. The unemployment rate is near a half-century low - 3.6%.
Some Fed officials have said the total effects of previous rate hikes have been baked into the economy. With inflation still above the Fed’s2% target, they concluded additional hikes may be needed.
Fed policymakers will next meet Sept. 19-20. (The AP 07/26/23) Federal Reserve raises key rate to highest level since 2001 | AP News
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