The Federal Reserve has raised its key interest rate by 0.25%, continuing its campaign against inflation. This rate hike is intended to help keep inflation at a rate of 2%, but could also make it more difficult for households and businesses to access credit, which could weigh on economic activity. The Fed's rate-setting committee noted that the U.S. banking system is sound and resilient, but cautioned that recent developments could have a negative effect on the economy.
