The Federal Reserve raised interest rates by a quarter percentage point, to a range of 4.75-5%. This is the ninth rate hike in a year and the highest interest rate since September 2007. The Fed is trying to tamp down inflation, which is running at a 6% annual pace.
The Fed also said that the U.S. banking system is "sound," and that recent developments are likely to weigh on credit conditions and inflation. Fed Chair Jerome Powell said he considered pausing rate hikes because of the banking crisis, but that the consensus of policymakers was to keep up the fight against inflation.
The Fed's projections show that 17 out of 18 Fed policymakers expect the benchmark rate to rise to at least 5.1% by the end of the year. This means that the Fed is likely to continue raising interest rates in the coming months.
