Federal Reserve Raises Interest Rate for Eighth Consecutive Time, Market Reacts Positively

The Federal Reserve announced on Wednesday that it is raising its benchmark interest rate by a quarter of a percentage point, its eighth consecutive hike as policy makers try to subdue inflation. This brings the federal funds rate to a range between 4.50% and 4.75%, the highest level since late 2007.

The Dow Jones Industrial Average was flat in response to the announcement, but the other two major market indexes were near their highest levels of the day in the last hour of trading, rebounding from earlier losses.

Fed chair Jerome Powell continued to stress that the Fed has more to do to get inflation in check. He said that the Fed’s campaign to curb prices is working, while indicating it plans to keep rates high for some time. This suggests that more rate hikes are on the way, and that rate cuts by the end of the year are unlikely.

Despite the rate hike, investors mostly cheered the latest moves from the Fed. The Dow and other major indexes have been on a steady climb since the announcement, suggesting that investors are not fighting the Wall Street bulls.

The Federal Reserve’s latest rate hike is part of its ongoing effort to keep inflation in check and ensure a healthy economy. The Fed has indicated that it will continue to raise rates in the near future, and investors appear to be optimistic about the future of the U.S. economy.