WASHINGTON - The Federal Reserve extended its year-long fight against high inflation Wednesday by raising its key interest rate a quarter-point despite concerns that higher borrowing rates could worsen the turmoil that has gripped the banking system."The U.S.
banking system is sound and resilient," the Fed said in a written statement released after its two-day meeting.At the same time, the Fed warned that the financial upheaval stemming from the collapse of two major banks is "likely to result in tighter credit conditions" and "weigh on economic activity, hiring and inflation."The Federal Reserve Headquarters are pictured on March 21, 2023 in Washington, D.C. (Photo by Kevin Dietsch/Getty Images) The central bank also signaled that it's likely nearing the end of its aggressive streak of rate hikes.
In a statement, it removed language that had previously indicated it would keep raising rates at upcoming meetings. The statement now says "some additional policy firming may be appropriate" — a weaker commitment to future hikes.And in a series of quarterly projections, the policymakers forecast that they expect to raise their key rate just one more time – from its new level Wednesday of about 4.9% to 5.1%, the same peak level they had projected in December.RELATED: Egg prices so high, Dollar Tree pulls them from shelves completelyStill, in its latest statement, the Fed included some language that indicated that its inflation fight remains far from complete.
It said hiring is "running at a robust pace" and noted that "inflation remains elevated." It removed a phrase, "inflation has eased somewhat," that it had included in its previous statement in February.Speaking at a news conference, Chair Jerome Powell said, "The process.