Fed raises key rate to highest level in 22 years after pause in June

The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by another 0.25 percentage point to the highest level in 22 years following a pause in June, recognizing the need to do more to contain inflation and leaving the door open to further hikes.The increase, announced after a two-day policy meeting, brings the federal funds rate, which banks charge each other for overnight borrowing, to a new target range of between 5.25 percent and 5.5 percent.This is the 11th hike since March 2022, when the U.S. central bank raised the key rate from near zero. In a statement, the bank sai…READ FULL ARTICLE