WASHINGTON (AP) The Federal Reserve raised its key interest rate Wednesday for the fourth time this year to reflect the U.S. economys continued strength but signaled that it expects to slow its rate hikes next year.
Despite the forecast for fewer hikes, investors sent stocks plunging once Chairman Jerome Powell began a news conference, apparently disappointed that Powell didnt go further to signal a slowdown in rate increases.
Wednesdays quarter-point increase, to a range of 2.25 percent to 2.5 percent, lifted the Feds benchmark rate to its highest point since 2008. It will mean higher borrowing costs for many consumers and businesses.
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