The Federal Reserve raised interest rates by a quarter percentage point on Wednesday and signaled that six more rate hikes are coming this year.
Leaders of the central bank also acknowledged that the inflation rate will remain high through the end of the year, hitting, according to the bank’s preferred metric, 4.3%.
The news that the Fed will hike the interest rate a total of seven times this year more than doubles the initial figure that was projected when policymakers first unveiled their rough plans in December.
In a statement released Wednesday following the entity’s two-day policy meeting, the Federal Reserve commented on the increased economic hardship spurred by the Russia-Ukraine war.
“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity,” said officials.
The bank remains under a significant amount of pressure to cool down the economy without triggering a recession. But rounds of planning to accommodate the reality of just a few weeks ago were upended when Russia invaded Ukraine sending waves in different directions across the global economy.