Fed hikes rates by a quarter percentage point, indicates increases are near an end

cnbc.com:

The Federal Reserve on Wednesday enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end. Along with its ninth hike since March 2022, the rate-setting Federal Open Market Committee noted that future increases are not assured and will depend largely on incoming data. «The Committee will closely monitor incoming information and assess the implications for monetary policy,» the FOMC's post-meeting statement said. «The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.» That wording is a departure from previous statements which indicated «ongoing increases» would be appropriate to bring down inflation. Stocks rose slightly after the announcement, as investors waited to hear more from Chair Jerome Powell in a press conference at 2:30 p.m. ET.

The softening tone came amid a banking crisis that has raised concerns about the system's stability. The statement noted the likely impact from recent events. «The U.S. banking system is sound and resilient,» the committee said. «Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.» Despite the warnings about potential implications from the banking crisis, the committee unanimously approved the rate hike. The increase takes the benchmark federal funds rate to a target range between 4.75%-5%. The rate sets what banks charge each other for