The Federal Reserve unanimously approved a quarter-point interest rate hike Feb. 1, slowing the pace of its increases in a clear sign the central bank is seeing progress in its fierce battle with inflation.
The decision, at the conclusion of the Federal Open Market Committee’s first meeting of 2023, comes after months of jumbo-sized rate increases intended to cool the economy, and marks the return to a more traditional interest-rate policy.
Since the last Fed meeting in December, two economic trends have indicated that the central bank’s mission to cool the economy and stall price increases is working: Recent data on wage growth and inflation have been encouraging and economic growth signals have become concerning.
