Fed declines to hike interest rates with inflation still above target

The Federal Reserve on Wednesday opted to maintain current interest rates at its latest meeting, keeping the baseline figure between 5.25% and 5.5%, which it has maintained since July.

The decision to maintain rates comes as inflation hit 3.1% in November, remaining above the target 2% rate. The Fed typically raises interest rates as a means of cooling economic activity and the subsequent price increases that come with it.

"We are likely at or near the peak rate for this cycle," Fed Chairman Jerome Powell said after the meeting of the Federal Open Market Committee (FOMC), The Hill reported.

Inflation skyrocketed in 2022, reaching a high of more than 9% last year, a development that prompted the Fed to announce a series of rate hikes to slow the price increases, ultimately reaching the current rate – a 22-year high.

Ben Whedon is an editor and reporter for Just the News. Follow him on X, formerly Twitter.