Fed Raises Interest Rates Again Despite Debate and Criticism.

The Federal Reserve raised its key short-term interest rate by a quarter percentage point and signaled it could now pause if inflation continues to ease as expected. The Fed removed previous guidance that “some additional policy firming (rate hikes) may be appropriate” to lower yearly inflation to its 2% target. The latest hike is expected to further slow economic activity as it drives up rates for credit cards, adjustable-rate mortgages and other loans. First Republic Bank became the second biggest bank failure in history when federal regulators seized the institution on Monday and JP Morgan Chase committed to acquiring the bank’s customer accounts and most of its assets.