From Business Insider · Katherine Li · · 1m 10s
Fed raises rates for first time in three years
The Federal Reserve hiked interest rates by a quarter point, signaling a shift in monetary policy as officials battle inflation.
In brief
The Federal Reserve hiked interest rates by a quarter point, signaling a shift in monetary policy as officials battle inflation. The Fed's first rate hike in three years won't immediately lower prices, so Americans will continue feeling pressure at the pump and grocery store. Originally reported by Business Insider.
Fed raises rates for first time
The Federal Reserve hiked interest rates by a quarter point on Wednesday, marking its first increase in three years as officials work to curb inflation.
Prices won't drop immediately
Fed Chair Kevin Warsh said the rate hike won't immediately bring down individual prices, meaning Americans will continue feeling pressure at grocery stores and gas pumps.
No forward guidance on future hikes
Warsh declined to signal whether more rate hikes are coming, saying future decisions will depend on incoming economic data rather than outside pressures.
Data will drive next moves
The Federal Open Market Committee will base future rate decisions on economic data alone, rejecting the idea of providing forward guidance to markets.
Markets await expert analysis
Economists and finance experts are weighing in on what the rate hike means and where interest rates could head in the coming months.
The takeaway
The Fed's first rate hike in three years won't immediately lower prices, so Americans will continue feeling pressure at the pump and grocery store.
