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Fed Raises Rates After Banking Stress Uncertainty

The Federal Reserve approved another quarter-percentage-point interest rate increase!

In addition, it also signaled that banking-system turmoil might end its rate-rise campaign sooner than seemed likely two weeks ago.

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The decision Wednesday marked the Fed’s ninth consecutive rate increase aimed at battling inflation over the past year. It will bring its benchmark federal funds rate to a range between 4.75% and 5%, the highest level since September 2007.

Officials sent a hint that they might be done raising interest rates soon in their postmeeting policy statement. “The committee anticipates that some additional policy firming may be appropriate,” the statement said. Officials dropped a phrase used in their previous eight statements that said the committee anticipated “ongoing increases” in rates would be appropriate.