A Pause, but Not the End of Rate Hikes

The Committee decided to maintain the target for the federal funds rate in a range of 5.00% to 5.25%.

Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy.

The Fed paused as expected today, but signalled that more rate hikes are likely before the year is out. We therefore expect another increase at the July meeting.