FOMC raises federal funds rate target by 25bps to 5.00-5.25% as widely expected, on unanimous vote. Hawkish stance is softened but there is no explicit indication of a pause in the accompanying statement.
Fed said, “In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
That compared to March statement that “The Committee anticipates that some additional policy firming may be appropriate”
Also, Fed maintained the pledge that “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals”.
