Today, the US Central Bank raised interest rates to the highest they have been in 16 years as they battle to stabilize the economy. The Board of Governors of the Federal Reserve System voted unanimously to approve the 1/4 percentage point increase in the primary credit rate to 5.25%, effective May 4, 2023.
This is the 10th interest rate hike in the last 14 months, up from net zero in March 2022.
According to the Federal Reserves statement, released on Wednesday, "the Committee is strongly committed to returning inflation to its 2 percent objective."
The Fed also mentioned that it will consider the effects of the Silicon Valley Bank crisis, which has prompted banks to tighten their lending standards and that's likely "to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain."
