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Published: Nov 02, 2022 4 min read

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angled view of federal reserve in washington DC with stock market graph behind it
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The Federal Reserve raised its benchmark interest rate by another 0.75% Wednesday and signaled that hikes could be smaller moving forward. A policy shift could be good news for the stock market, but investors shouldn’t expect a major change anytime soon.

The latest rate hike brings the Fed’s benchmark federal funds rate to a target range of between 3.75% and 4%.

The central bank said in a news release it would take “the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments” into account when determining the pace of future rate increases.