Today, the Federal Reserve voted to raise interest rates by 0.25%, the highest rate since October 2007. This decision was met with mixed reactions, as Chair Jerome Powell stated that it would be “premature” to declare victory against inflation.

The news sent stocks rallying, while the dollar fell in value. Powell spoke at length about the need to tackle inflation, saying that the Federal Reserve was “strongly resolved” to complete the task.

Analysts were divided on the decision, with some claiming that the rate increase was too aggressive and could lead to a recession. Others argued that it was necessary to combat inflation, which has been on the rise in recent months.

The decision comes as the US economy continues to recover from the pandemic. With the rate increase, the Federal Reserve is hoping to maintain economic stability and encourage growth.

The full impact of the rate increase is still unknown, but it is expected to have a significant effect on the markets and the economy as a whole.