The Federal Reserve has raised its benchmark interest rate by 0.25 percent and indicated that more increases could be coming before it drops the rates.
The Federal Open Market Committee said "ongoing increases" will be appropriate to achieve a monetary policy stance that is sufficiently restrictive to return inflation to its 2 percent objective, according to a Feb. 1 news release.
In a news conference following the rate increase, Fed Reserve chair Jerome Powell said "a couple" more hikes are likely needed to reach a high enough interest rate at which the Fed would feel comfortable pausing the hikes, according to NBC News.
Recent indicators point to modest growth in spending and production in addition to robust job gains in previous months, according to the Fed. While inflation has eased slightly, it remains elevated, and Russia's war against Ukraine is contributing to elevated global uncertainty.
The FOMC said it continues to be highly attentive to inflation risks.