WASHINGTON — The Federal Reserve’s Open Market Committee ended a two-day meeting Wednesday afternoon by announcing the second increase to a key interest rate this year.
The 0.25 percent hike in the Fed Funds rate follows a similar move higher in March, but it may be more difficult for the Fed to justify more rate hikes this year in light of sluggish inflation.
Despite steady job growth and an unemployment rate that’s at a 16 year low, the pace of inflation has eluded the Fed’s goal. A report earlier Wednesday showed the Consumer Price Index, a measure of inflation at the retail level, fell 0.1 percent.
Federal Reserve Chairman Janet Yellen holds a 2:30 p.m. Wednesday news conference and will face questions about the Fed’s dual mandate of controlled inflation and low unemployment.
The Federal Reserve’s next interest rate meeting is in September.
