Fed raises federal funds rate by 25 basis points

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The Federal Open Market Committee (FOMC) of the United States Federal Reserve announced on Wednesday that it will raise the federal funds rate target range by a quarter percentage point to between 5% to 5.25%.

“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” the policymakers underscored in the statement, adding that the economic activity in the country moderately expanded during the first quarter, but warned that inflation still remains “elevated.” “Job gains have been robust in recent months, and the unemployment rate has remained low,” the policymakers added.

 

Treasury yields remained lower on Wednesday after Federal Reserve policy makers delivered a widely expected quarter percentage point interest rate hike that pushed its policy rate above 5% and left the door open for additional action if needed.