Fed raises key rate by half-point and signals more to come

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) – The Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year and signaling more hikes to come.

But the Fed announced a smaller hike than it had in its past four meetings at a time when inflation is showing signs of easing.

Though lower than its previous three-quarter-point hikes, the latest move will further increase the costs of many consumer and business loans and the risk of a recession.

The policymakers also signaled that they are prepared to raise their benchmark rate by an additional three-quarters of a point and leave it there through 2023.

Some economists had expected that the Fed would project only an additional half-point increase.