US Fed hikes interest by 25 bps, hints at end to increases

The Federal Reserve

The Federal Reserve lifted today, March 22, interest rates by 25 basis points (bps) in line with expectations despite recent concerns about the banking sector.  
  
The US central bank raised target interest rate to a range of 4.75%-5%, from 4.5% and 4.75%. 

This is the ninth-straight interest rate hike since the Federal Open Market Committee (FOMC) started the “tightening” process in March 2022. 

The US banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation, the Fed added.

The FOMC will closely monitor incoming information and assess the implications for monetary policy.

The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. 

The Fed’s statement presented a different tone, as it previously stated that continuous rate increases will control inflation.