The Federal Reserve on Wednesday, May 3, approved its 10th interest rate increase in just a little over a year and dropped a tentative hint that the current tightening cycle is at an end.
The Fed raised its benchmark borrowing rate by a quarter percentage point. The increase takes the fed funds rate to a target range of 5% to 5.25%.
In an overt shift, the central bank no longer says it “anticipates” further rates will be needed, only that it will watch incoming data to determine if more hikes “may be appropriate.” Read more.