The Federal Open Market Committee raised the federal funds rate target by 25 basis points to a range of 4.5% to 4.75%.
Rate Hike: The increase followed a 50-basis-point hike in December, which ended a string of four consecutive three-quarter-point hikes. In its statement announcing the rate increase, the FOMC said inflation “has eased somewhat but remains elevated.”
Powell Remarks: In a press conference on the rate decision, Federal Reserve Chair Jerome Powell said that while “the disinflation process has started,” the Fed’s campaign of rate hikes isn’t over.
Consensus Statement: The FOMC also unanimously reaffirmed its “Statement on Longer-Run Goals and Monetary Policy Strategy,” also known as the consensus statement. It articulates the FOMC’s approach to monetary policy, including its 2% inflation target.