The Federal Reserve hit the pause button and opted not to vote for another rate hikes.
The central bank’s policymaking Federal Open Market Committee voted unanimously to hold the federal funds rate at the 5% to 5.25.% range. Prior to this decision, the Committee voted for rate hikes over the course of 10 consecutive meetings.
“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” said the Fed in a press statement. “In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
The Fed added it would “continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2% objective.”