The Federal Reserve yesterday raised interest rates a quarter-point, the tenth hike in just over a year, to tame inflation. The central bank said it will pause further increases to allow its policies to work through the economy, according to published reports.
“In assessing the appropriate stance of monetary policy, the committee will continue to monitor the implications of incoming information for the economic outlook,” the Federal Reserve said in a statement. “The committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that would impede the attainment of the committee’s goals.”
The statement added that the Fed’s assessment of inflation would consider readings on labor market conditions, inflation pressures and expectations, and financial and international developments.
The target range for the federal funds rate is now 5% to 5.25%, the highest in 16 years. The move capped the fastest series of rate increases since the 1980s.
The Wall Street Journal reported that the housing market, one of the sectors that can be an indicator for the marine industry, has seen signs of improvement.
The Fed added that “economic activity expanded at a modest pace in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low.” It is “strongly committed” to achieving an inflation rate of 2%.
