Feds Raise Interest Rate By Another Quarter Percent, Highest In 22 Years

Although the hikes are meant to combat inflation, raising the interest rates runs the risk of bringing the country into a recession.

WASHINGTON - The United States Federal Reserve raised the interest rate by another quarter of a percentage point (0.25%) to 5.50% on Wednesday, which is the highest rate in 22 years (since January 2001).

Chair of the Federal Reserve of the United States Jerome Powell

The interest rate change is the 11th hike in the last 17 months of gradual increases. The Federal Reserve has said that they would like to reach a target inflation rate of 2% and still thinks that this can be done with a "soft landing".

Federal Reserve: Inflation Remains Elevated: