WASHINGTON, D.C. (WDNews) — The Federal Reserve has raised its key interest rate by a quarter percentage point as inflation remains elevated.
The Federal Open Market Committee voted 12-0 to increase the target range for the federal funds rate to 3.75% to 4%.
The committee said economic activity continues to grow at a solid pace. Domestic spending remains resilient, productivity growth is strong and business investment remains robust.
Federal Reserve officials also said job gains have kept pace with the workforce and the unemployment rate has changed little.
“Inflation remains elevated,” the committee stated. “Today’s policy action will support a timelier return to the Committee’s 2 percent goal.”
“The Committee will deliver price stability,” the statement continued.
The Federal Reserve said it will continue its policy of maintaining ample reserves in the banking system.
