Fed Raises Interest Rates by Quarter Point

Five Key Takeaways from the Decision

1. No Further Rate Hikes Signaled

The Federal Reserve's (Fed) statement omitted language indicating that more rate hikes are ahead, suggesting a pause in the tightening cycle.

2. Economy Remains Solid

Economic activity has continued to expand at a steady pace, although job gains have slowed slightly since early 2023.

3. Inflation Progress

The Fed acknowledged progress in bringing inflation down, but emphasized that it remains above the 2% target.

4. Commitment to Fight Inflation

The Fed reiterated its commitment to using all available tools to reduce inflation and achieve price stability.

5. Data-Driven Approach

The Fed indicated that it will make future decisions based on incoming economic data and will continue to closely monitor inflation and economic conditions.