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Fed’s New Interest Rates Reach 22-Year High

The Federal Reserve Bank has hiked interest rates to a 22-year high after pausing last month's meeting.

Posted July 27, 2023

The Federal Reserve announced Wednesday it will increase interest rates to 5.5 percent, a high rate not seen in 22 years.

All members of the Federal Open Market Committee voted to raise the interest rate range increased by 0.25 percent, from 5.25 to 5.5 percent. This lasted hike is also the eleventh hike since March 2022.

The committee decided to skip the June meeting to further assess the result of another rate hike.

Fed officials will likely not ease rate hikes until inflation is closer to the bank’s 2 percent annual target. According to the Department of Labor, the consumer price index data shows the current price index is sitting at 3 percent year-over-year.

For context, the Fed voted unanimously to maintain the interest rate of 0.15 percent in January 2022.