Fed lifts rate by quarter-point and signals more hikes ahead

WASHINGTON (AP) — The Federal Reserve extended its fight against high inflation Wednesday (Feb. 1, 2023) by raising its key interest rate by a quarter-point, its eighth hike since March. And the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes. Though smaller than its previous hike — and even larger rate increases before that — the Fed’s latest move will likely further raise the costs of many consumer and business loans and the risk of a recession.