Fed Hikes Interest Rates By Quarter Point After June Pause

The central bank says it is 'prepared to adjust the stance of monetary policy as appropriate if risks emerge.’

fed interest rate hike
(Image credit: OLIVIER DOULIERY/Getty Images)

The Federal Reserve raised interest rates by 25 basis points, or 0.25%, on Wednesday as expected, bringing the benchmark borrowing rate to its highest level since 2001.

The increase, the Fed’s 11th rate hike since March 2022, brings the short-term federal funds rate to a target range of 5.25% to 5.5%. After 10 consecutive rate hikes aimed at curbing inflation, the Fed paused in June but left the door open to future hikes, which many market watchers expected.  

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Esther D’Amico
Senior News Editor

Esther D’Amico is Kiplinger’s senior news editor. A long-time antitrust and congressional affairs journalist, Esther has covered a range of beats including infrastructure, climate change and the industrial chemicals sector. She previously served as chief correspondent for a financial news service where she chronicled debates in and out of Congress, the Department of Justice, the Federal Trade Commission and the Commerce Department with a particular focus on large mergers and acquisitions. She holds a bachelor’s degree in journalism and in English.