The Fed lifts rates by a quarter point | CNN Business

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JUST IN: The Fed lifts rates by a quarter point, just two days after another bank failure that spurred more critics to call for the central bank to pause hikes

The move comes amid ongoing fragility in the banking sector triggered partly by higher interest rates, and following the collapse of three regional banks. The Fed’s post-meeting statement re-emphasized the central bank’s commitment to bringing down inflation, and left additional rate increases a possibility, depending on developments in the financial system and on inflation.

The Fed also noted that tougher lending standards are likely to slow the economy, which could help the central bank achieve its targeted inflation goal. “Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation,” the statement said. “The extent of those effects remains uncertain.” This story is developing and will be updated.

 

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