Despite slowing inflation, Fed hikes key interest rate again

Jerome Powell

WASHINGTON (AP) — The Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year and signaling more hikes to come. But the Fed announced a smaller hike than it had in its past four meetings at a time when inflation shows signs of easing.

Though smaller than the Fed’s previous three-quarter-point hikes, its latest move will further heighten the costs of many consumer and business loans and the risk of a recession.

The latest rate hike was announced in a statement issued one day after an encouraging report showed that inflation in the United States slowed in November for a fifth straight month.

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