Rates will be raised by 0.25%.

Last night, the United States Federal Reserve approved a new hike in the federal interest rate, the first such hike since 2018. This approval will raise the interest rate by 0.25% in an effort to assuage ongoing inflation concerns without overly affecting the economy at large. Several more interest rate hikes are scheduled for the remainder of this year and for 2023, with no additional hikes as of yet scheduled for 2024.

“We are attentive to the risks of further upward pressure on inflation and inflation expectations,” Federal Reserve Chairman Jerome Powell said at a news conference. “The committee is determined to take the measures necessary to restore price stability. The US economy is very strong and well-positioned to handle tighter monetary policy.”

Following the Reserve’s announcement, the Federal Open Market Committee released a follow-up statement going into detail. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the statement said.

The Fed on Wednesday approved its first interest rate increase in more than three years. https://t.co/Cama0jaOKl

— CNBC (@CNBC) March 17, 2022

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the US economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.”