Federal Reserve Raises Interest Rates by Quarter-Point, Signals Further Rate Hikes

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 to 4.75 percent.
This was the smallest rate increase since the current quantitative tightening cycle began in March 2022.
Central bank officials believe that further 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….