FOMC Raises Rates by Quarter Point in Unanimous Vote
Statement Omits Language Signaling More Rate Hikes Are Ahead
Federal Reserve Issues FOMC Statement
The Federal Reserve's Federal Open Market Committee (FOMC) raised interest rates by a quarter point today in a unanimous vote, bringing the benchmark federal funds rate to a range of 4.5% to 4.75%. This is the highest level for the federal funds rate since October 2007.
In a statement accompanying the rate hike, the FOMC said that it is "committed to using its full range of tools to bring inflation back to its 2% goal." The statement also noted that the economy "has continued to expand at a solid pace," but that "inflation remains elevated."
The FOMC's decision to raise rates comes after several months of rising inflation. The Consumer Price Index (CPI), which measures the prices of a basket of goods and services purchased by consumers, has been running at an annual rate of 8.3% over the past 12 months, well above the Fed's 2% target.
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