U.S. Federal Reserve raises interest rates by a quarter of a percentage point

The U.S. Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, May 3, while signaling it may pause further increases.

The decision lifted the U.S. central bank’s benchmark overnight interest rate to the 5 percent - 5.25 percent range.

It is the Fed’s tenth consecutive increase since March of 2022.In its accompanying policy statement, the Fed said that “in determining the extent to which additional policy firming may be appropriate,” officials will study how the economy, inflation and financial markets behave in the coming weeks and months.

U.S. officials will need time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling, and monitor the course of inflation.

(CGTN)