The Federal Reserve raised interest rates by 25 basis points for the 10th time in just over a year, pushing rates above 5% for the first time since 2007.
However, the Fed hinted that this might be the last hike for a while, as recent slowdowns in inflation and hiring may indicate a pause in rate hikes. The Fed removed a line from their statement that previously indicated they "anticipated" additional rate increases.
Fed Chair Jerome Powell acknowledged this change, but also made it clear that the Fed will continue to do what is necessary to tame inflation. The Fed will keep a close eye on the labor market and inflation in order to avoid a recession.
Looking ahead…if current trends continue, we may have seen the last of interest rate hikes for now. But don’t get too excited: Powell said it’s too soon to begin thinking about rate cuts.