A Fed still wary of inflation is set to raise rates to a 22-year peak. Will it be the last hike?

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Even after inflation has steadily eased this year, the Federal Reserve’s policymakers still think prices are rising too fast and are almost certain to lift their key interest rate by a quarter-point on Wednesday. The Fed’s increase would be its 11th hike in 17 months. As with its previous rate hikes, this one would likely further elevate the costs of mortgages, auto loans, credit cards and business borrowing. Another hike is expected despite a run of encouraging news that has sent stock prices higher, boosted consumer confidence and brightened hopes that the Fed can pull off a difficult “soft landing,” in which inflation would continue to slow toward the Fed’s 2% target without sending the economy tumbling into a recession.