Federal Reserve raises interest rate 25 basis points, expects further hikes

Federal Reserve

The Federal Reserve decided today, Feb. 1, to raise the interest rate 25 basis points (bps) to slow the pace of monetary-policy tightening.
 
The interest rate was raised to a range of 4.5% to 4.75%, the central bank said.
 
This is the eighth interest-rate hike in a row, but it is lower than December’s 50-bps increase.
 
The Federal Open Market Committee (FOMC) expects the continued interest-rate hike to help return inflation to its target of nearly 2%.

The committee added that it will take into account the cumulative tightening of monetary policy and the lags with which the monetary policy affects economic activity and inflation.