The Fed takes its interest rate to its highest level since the beginning of 2008

The measure is similar to that expected by the market.

The monetary policy statement noted the still-evolving impact of the Fed’s rapid pace of rate hikes, and the desire to fine-tune the fed funds rate to a level “constraining enough to return inflation to 2% in time”.

“Continued increases in the target range will be appropriate,” the US central bank said on Wednesday at the end of its latest two-day policy meeting.

While they did not rule out any future decision, the officials said that “in determining the pace of future increases in the target range, the (Federal Open Market) Committee will take into account the accumulated tightening of monetary policy, the lags with which the monetary policy affects economic activity and inflation, and economic and financial developments”.

The Fed statement said officials remained “very alert to inflation risks,” opening the door to further hikes.

With information from Reuters