This will be the 11th time since March of 2022 that the Fed has raised rates as part of a tightening process. Fed Chairman Jerome Powell indicated that more could come, as he expressed concerns about mitigating high inflation. In his Wednesday press conference right after the meeting, Powell said, “We’ve covered a lot of ground, and the full effects of our tightening have yet to be felt.”
Powell’s summary leaned optimistically toward this move having a positive effect.
Fed officials have made progress in that fight, but they haven’t reached their target. In June, the bankers signaled they could boost rates by a quarter-point two more times before year’s end to achieve that goal.
But rate hikes take time to produce results and can trigger a recession. For some economists, that’s a reason for the Fed to hold rates steady after Wednesday’s move.
However, some economists say July’s rate hike will be the last one of this cycle, citing progress on inflation and a slowing economy.