The U.S. Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%–4%, with the Federal Open Market Committee approving the decision unanimously in a 12–0 vote.
The Fed said economic activity is growing at a solid pace, with domestic spending remaining resilient and productivity and business investment staying strong. Job gains have kept pace with the workforce, while the unemployment rate has changed little.
However, inflation remains elevated. The Fed said the latest rate increase is intended to support a faster return toward its 2% inflation target.
The central bank also said economic uncertainty remains high, partly because of geopolitical developments, while continuing its policy of maintaining ample reserves in the banking system.
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