Federal Reserve Raises Rate

Federal officials believe that raising rates assist in taking money out of the economy which reduces demand and overall lowers prices.

On Wednesday, the Federal Reserve approved to boost the borrowing rate half a percentage point.

The raise is part of the fed’s on-going battle against inflation. This marks the highest level of interest in 15 years.

The rate is now between a 4.25% and 4.5%.

Federal officials believe that raising rates assist in taking money out of the economy which reduces demand and overall lowers prices.

The motion to increase the borrowing rate presents an acknowledgment that inflation may be easing.