The Federal Reserve raised interest rates Wednesday by half a percentage point and scaled back other pandemic-era economic supports, strengthening its efforts to fight the highest inflation in 40 years.

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain,” according to a statement released at the conclusion of the Fed’s two-day policy meeting. “The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions.”

The Fed also announced it will start scaling back its nearly $9 trillion balance sheet in June, moving at a quicker pace than the last time the Fed shrank its portfolio, several years following the Great Recession.

At 2:30 p.m. Eastern time, Fed Chair Jerome H. Powell will answer questions on the economic outlook, inflation, the job market, and whether the Fed can manage to slow the economy without causing a recession. Global uncertainty also clouds the path ahead, as Russia’s invasion of Ukraine drives energy prices up, and covid shutdowns in China trigger a new wave of supply chain snarls.... Read More: Washington Post