The Federal Reserve has risen its interest rate for the eighth time in a row. As such, it is now 4.75 percent, which is up from 4.5 percent. This isn’t expected to be the last such raise. Instead, two more are expected to come, though these things are never 100 percent certain because macroeconomics is far from being a solved science.
For those unfamiliar, these changes matter because they determine the rate at which normal banks borrow and lend for the night to fulfill their regulatory obligations. Those are about as risk-free as credit transactions get, meaning everything else needs to be more expensive to convince lenders to take a chance. Currently, inflation is showing signs of being brought under control but remains higher than normal. That means that the raises will continue until that goal has been made. Of course, something unforeseen can show up, which is why these changes aren’t introduced all at once but are instead made gradually so that adjustments can be made as necessary.