The U.S. Federal Reserve on Wednesday decided to raise its interest rate by another 25 basis points to the highest level in 22 years.
The widely anticipated move has brought the U.S. central bank’s benchmark rate to 5.25%-5.5%, the highest level since early 2001, while the market is looking for any signals in hope that this could be the final hike in this cycle.
Fed’s Chairman Jerome Powell said there is a long way to go to reach the inflation target of 2% despite data, which showed that prices had been moderating since the middle of last year.
“I would say it’s certainly possible that we will raise funds again at the September meeting if the data warranted,” said Powell at the news conference.
“And I would also say it’s possible that we would choose to hold steady and we’re going to be making careful assessments, as I said, meeting by meeting,” he added.
The U.S. core inflation in June was running at 4.8%.
