The Federal Reserve raised interest rates by 25 basis points, lifting the benchmark fed funds rate to a range of 4.75 percent and 5 percent, the highest since late 2007.
Fed officials say that the “banking system is “sound and resilient,” adding that the recent developments “are likely to result in tighter conditions for households and businesses,” which could weigh on economic activity, hiring, and inflation levels.
“The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks,” the FOMC said in a statement.
Fed projections show that there will be one more quarter-point rate hike this year and cuts totaling 75 basis points in 2024….