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Market Update

Fed to Investors: Just the Beginning for Rate Hikes

In a mission to fight inflation, Wednesday's rate hike is likely the first of seven this year alone.

The Federal Reserve has a clear message for investors: Expect interest rates to head steadily higher in the months to come.

Against a backdrop of stubbornly high inflation and uncertainty in the global economy rippling out from Russia’s attack on Ukraine, the Fed, as expected, announced Wednesday a 25-basis-point increase in the federal-funds rate from zero, where it had been pegged since the onset of the pandemic-driven recession.