The Federal Reserve announced Wednesday it had raised its key federal funds rate by 0.25% as it seeks to keep putting downward pressure on economic growth in its bid to slow inflation. 

It was the smallest rate hike since the central bank began an aggressive campaign that has produced nearly monthly rate hikes since March. But the Fed said in its Wednesday statement that more rate increases are likely coming.

It's all part of an effort to slow price increases that have bedeviled U.S. consumers.

While there are now ample signs that inflation is, indeed, decelerating, some indications suggest that the economy is already reflating, which could send prices creeping up again.

According to a Bloomberg index, financial conditions in the U.S. have eased to their loosest level since last February, meaning it is becoming easier to borrow money and sell goods again. That's reflected in declining average mortgage rates, which have fallen back to 6.13% after having hit a high of 7.08% in November.

In addition, rising prices of commodities like oil, as well as a weakening U.S. dollar and improvement in the performance in the stock market, have all contributed to some cautious optimism about the economy.