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Fed Raises Interest Rates to Highest Levels in 22 Years. How High Will Rates Go? This is the 11th rate increase since March 2022, reflecting the Fed's efforts to control inflation.

By Madeline Garfinkle

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

The Federal Reserve raised interest rates by a quarter percentage point on Wednesday, bringing it to the 5.25% to 5.50% range, and reaching the highest level in 22 years. This is the 11th increase since March 2022 when the Fed began hiking up rates as a means to tame inflation.

The rate of inflation showed signs of cooling in June and now sits at a rate of 3% year-over-year, but the Fed is still aiming for that number to be closer to 2%.

"We've covered a lot of ground and the full effects of our tightening have yet to be felt," Fed Chair Jerome Powell said at a news conference Wednesday.

Federal Reserve Chair Jerome Powell speaks to press during a news conference on July 26th. Alex Wong | Getty Images

If inflation cools further, there may be questions about the need for another rate increase later in the year. In June, the Fed held rates steady but scheduled two more hikes in 2023 — which means there still could be another increase on the horizon.

"It is certainly possible that we would raise funds again at the September meeting if the data warranted," Powell said at the press conference. "And I would also say it's possible that we would choose to hold steady at that meeting. We're going to be making careful assessments, as I said, meeting by meeting."

Related: Wage Growth Outpaces Inflation for First Time in 2 Years, Offering Hope for Economic Growth in the U.S. — But Will the Wage Gains Last?

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

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