"US Fed Signals Upcoming Interest Rate Hikes in Latest Statement"

The US Federal Reserve has kept interest rates unchanged but indicated that borrowing costs will likely rise by another half a percentage point by the end of this year. The Fed is reacting to a stronger-than-expected economy and a slower decline in inflation. The policymakers at the median saw the benchmark overnight interest rate rising from the current 5 percent to 5.25 percent range to a 5.5 percent to 5.75 percent range by the end of the year. The decision snapped a string of 10 consecutive rate hikes delivered as the Fed responded to the worst outbreak of inflation in 40 years with a matching set of aggressive policy moves.