Federal Reserve Raises Interest Rates to Highest Level in Over a Decade

The Federal Open Market Committee increased the federal funds rate by a quarter of a percentage point to between 5 and 5.25 percent, the highest level since 2007.
The rate hike is the seventh since 2015 and the second this year as the Fed continues on its path of gradual tightening of monetary policy.
The Fed signaled that more rate hikes are likely, but Chairman Jerome Powell did not commit to a pause.
Several financial news publications reported details of the Fed's rate decision and markets' reactions.
While rate hikes can slow economic growth by making it more expensive for businesses and consumers to borrow money, the Fed wants to prevent the economy from overheating.