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Published: Feb 01, 2023 4 min read

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Federal Reserve Board Chairman Jerome Powell speaks during a news conference
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The Federal Reserve's battle with inflation continued Wednesday with an interest rate hike of 25 basis points (or 0.25%) and an indication that more increases are likely on the horizon.

The announcement was expected and smaller than the hikes investors have gotten used to recently. In December, the U.S. central bank raised rates by a half percentage point; the four hikes before that were by 75 basis points (0.75%). The latest increase brings the federal funds rate, the rate at which banks borrow money from each other overnight, to a target range of between 4.5% and 4.75%.

Here's what investors need to know.

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