Fed raises rates yet again

Federal Reserve officials announced Wednesday, July 26, that they will raise the Fed's key interest rate to 5.3%.

The increase is the 11th the Fed has instituted in the past 17 months, pushing the rate to its highest level in 22 years.

Higher rates mean more expensive borrowing costs for businesses and consumers.

The Fed's overriding goal in these repeated hikes, according to Fed chairman Jerome Powell, is to reduce inflation to a 2% level.

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