US Fed lifts interest rates by 25 bps

The Federal Reserve

The Federal Reserve hiked interest rates today, May 3, by 25 basis points (bps) in line with expectations.  

  
The US central bank raised target interest rate to a range of 5% and 5.25%, from 4.75% and 5%. 

The Federal Open Market Committee (FOMC) will closely monitor incoming information and assess the implications for monetary policy.

“Economic activity expanded at a modest pace in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated,” the US central bank said.

The US banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation, it added.