Federal Reserve Raises Interest Rates to Highest Level in Two Decades

The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher cost of essentials like food, housing and transportation. We’re highly attentive to the risks that high inflation poses to both sides of our mandate, and we are strongly committed to returning inflation to our 2 percent objective. At today’s meeting, the committee raised the target range for the federal funds rate by a quarter percentage point, bringing the target range to 5-and-a-quarter to 5-and-a-half percent. We are also continuing the process of significantly reducing our securities holdings.