"We're closer, or maybe even there," Powell said of the end-point of rate increases that have boosted the Fed's policy rate by a full 5 percentage points in the 10 meetings since March 2022, a torrid pace for the central bank and one that may now warrant allowing some time for the impact to be felt in full. The change doesn't foreclose the central bank's policy-setting committee from hiking rates again when it meets in June, but Fed Chair Jerome Powell said it was now an open question whether further increases will be warranted in an economy still facing high inflation, but also showing signs of a slowdown and with risks of a tough credit crackdown by banks on the horizon. The US central bank raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.00-5.25 per cent range, as expected by financial markets, but in doing so dropped from its policy statement language saying that it "anticipates" further rate increases would be needed. But more than a year later, inflation remains stubbornly above its long-term target of 2 per cent. The central bank embarked on an aggressive campaign of rate hikes in March last year to take aim at price increases. WASHINGTON: The US Federal Reserve raised its benchmark lending rate for a tenth time on Wednesday (May 3) in a move that could be the last in the current cycle if the economy cools sufficiently.
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