The Federal Reserve raises interest rates again by 0.25% in the United States

() — The US Federal Reserve voted unanimously to raise interest rates by 0.25% on Wednesday. This is the 10th increase the central bank has approved since its battle against inflation began in March last year.

The move comes amid the current fragility the banking sector is going through due, in part, to higher interest rates and the collapse of three regional banks. The markets were already anticipating the rate hike.

The quarter-point increase takes the benchmark federal funds rate from a level of 5% to 5.25%, the highest in more than 15 years.

The statement issued by the Fed after their meeting once again emphasized the central bank’s commitment to reduce inflation. It also opened the possibility of additional rate increases, depending on the evolution of the financial system and inflation.

Tellingly, the Fed’s statement did not include a notation that “some additional policy reaffirmation may be appropriate,” which was included in its earlier statement. That omission leaves open the possibility of an upcoming pause in rate hikes.

The Fed also noted that tighter credit standards are likely to slow the economy, which could help the central bank meet its inflation target.

“Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation,” the statement said. “The extent of those effects remains uncertain.”