The Federal Reserve raised interest rates by 25 basis points, matching market expectations and lifting the benchmark federal funds rate to a target range of 4.50 percent and 4.75 percent.
This was the lowest rate hike since the first increase of the current quantitative tightening cycle in March.
Central bank officials believe that ongoing increases will be necessary to obtain “a stance of monetary policy that is sufficiently restrictive,” according to a statement from the Federal Open Market Committee (FOMC). While inflation has slowed, it remains too high for the U.S. economy.
“Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation has eased somewhat but remains elevated,” the FOMC stated….