The Federal Reserve announced another interest raise hike of 0.25 basis points Wednesday, to 4.5%, as they continue to attempt to fight inflation.

It’s the eighth consecutive rate raise since March of 2022 but lower than recent moves.

In a statement, the Fed signaled that similar increases will follow in the ensuing months but also noted that some inflation indicators have eased slightly.

The Federal Reserve said it remains “highly attentive to inflation risks,” adding that the benchmark interest rate would require “ongoing increases” to bring inflation down to normal levels.

The Consumer Prices Index, which most economists use to track the nation’s inflation levels, rose 6.5% over the 12-month period ending in December, – a significant slowdown from a summer peak of nearly 9 percent but still more than triple the Fed’s target inflation rate of 2%.

According to the December report from the Labor Department, food prices were up another 10% over the past year, while egg prices alone have soared 60%.

Higher interest rates slow down inflation by reducing demand as supply remains the same except more expensive across the board.

Money continues to cost more to borrow causing fewer people to take out mortgages to buy houses or get business loans to expand their companies.

The prevailing economic theory is that raising rates will create less economic activity so that the supply of goods and services available can catch up to demand.

But companies are experiencing weaker profits, sales and are hiring fewer people.

This is a developing story and will be updated