Headline Roundup
Type of Content
Approved Story
1
Format
Region
News Item Format
Standard
Image Caption
Chen Mengtong/China News Service/VCG via Getty Images
Autocurated
0
The Federal Reserve raised interest rates by a quarter percentage point on Wednesday, marking the 10th consecutive move in an aggressive hiking campaign that began a year ago to cool inflation.
Why it matters: As the banking system shows renewed signs of stress, the central bank gave its strongest signal yet that it could pause its series of rate increases.
Driving the news: In a policy statement, which is parsed by economists and traders, the Fed said it would monitor economic and financial data to assess "the extent to which additional policy firming may be appropriate."
In other words, it is leaving the door open to another increase at its next policy meeting in June should, for example, the economy pick up momentum or inflation prove more persistent than expected. But if that's not the case, officials could choose to pause its rate hiking cycle.