In line with broad market expectations, the Federal Reserve (Fed) increased interest rates by 25 basis points at its May 2023 policy meeting.
This was the tenth consecutive hike, lifting the Fed's current funds rate to a 16-year high in the 5.00%-5.25% range.
Here are the details from the Fed's follow-up statement after the decision:
The Fed continues to assert its position to lower inflation.
However, the Fed has stopped short of saying they expect additional interest rate hikes.
Chairman Jerome Powell called it a 'significant change'.
However, a decision on stopping or 'pausing' interest rates was not made at the meeting.
The US banking system appears to remain resilient.
Tighter credit conditions may hurt the economy, hiring and inflation.
Economic activity grew at a moderate pace in the first quarter.
Job growth has strengthened in recent years, inflation remains high.
The Fed will take a data-driven approach.
Following the Fed's latest decision, the market interpreted it as an indication that the central bank will end its rate hikes.
However, the central bank still maintains its stance on efforts to fight inflation which is still far from the 2% target.
The market's initial reaction showed the US currency king dollar plunging lower and lifting its other main rivals higher.
