The Federal Reserve approved its 10th interest Rate increase in just a little over a year and dropped a tentative hint that the current tightening cycle is at an end. The rate sets what banks charge each other for overnight lending but feeds through to many consumer debt products such as mortgages, auto loans and credit cards. Wednesday's decision comes amid U.S. economic fragility and over the objections of prominent Democratic lawmakers, who urged the Fed this week to stop rate hikes that they insisted could cause a recession and excessive loss of jobs. However, the labor market has remained strong since the increases started in March 2022. Along with inflation, the Fed has had to deal with tumult in the banking industry that has seen three mid-size banks shuttered. Though central bank officials insist the industry as a whole is stable, an expected tightening in credit conditions and heightened regulations ahead are expected to weigh further on economic growth that was just 1.1% annualized in the first quarter.

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