The U.S. Federal Reserve once again increased its short-term interest rate, this time by half a percentage point to a targeted range between 4.25% and 4.5%. This is the highest rate in 15 years. Officials indicated that they expect to keep rates higher throughout 2023, with the first decrease not expected until 2024. Chair Jerome Powell noted that it is important to keep fighting inflation. While this interest rate hike raises the cost of borrowing, it also raises the interest earned on banking deposits.