Federal Reserve raises its key rate for 11th time by a 0.25% in its drive to slow inflation
(NBC) U.S. inflation has now declined for 12 straight months. But in June, consumer prices increased 3% year on year. While that's the lowest the annual inflation rate has been in more than two years, it's still too high for the Federal Reserve, which is looking to wrestle increases down to about 2%. To help move things in the right direction, analysts say the central bank will raise its key federal funds rate Wednesday by 0.25% to more than 5%. That would be the highest level since 2007. By raising its interest rates, the Federal Reserve hopes to make borrowing and investing more expensive, thereby reducing overall demand for goods, services and labor in the economy.
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