The Federal Reserve on Wednesday raised interest rates 25 basis points, or 0.25%, amid the banking crisis.
Two US banks recently failed after they were unable to produce enough cash for depositors.
The banking crisis stems from the Federal Reserve's decision to raise interest rates seven times in 2022.
Jerome Powell raised interest rates by 450 basis points in 2022 to cover inflation.
The rate hikes are crushing the regional banks, but the Fed raised rates again.
The Federal Open Market Committee (FOMC) indicated that the rate hikes are coming to an end.
"The Committee will closely monitor incoming information and assess the implications for monetary policy," the FOMC's post-meeting statement said, according to CNBC. "The Committee anticipates that some additional policy may be appropriate to achieve a monetary policy stance that is sufficiently restrictive to return inflation to 2 percent over time."
CNBC reported:
The Federal Reserve on Wednesday enacted an interest rate increase of a quarter percentage point, expressing caution about the recent banking crisis and indicating that the hikes are coming to an end.
Along with its ninth hike since March 2022, the Federal Open Market Committee noted that future increases are not assured and will largely depend on incoming data.
"The U.S. banking system is robust and resilient," the committee said. "Recent developments are likely to result in tighter credit conditions for households and businesses and weigh on economic activity, hiring and inflation. The extent of these effects is uncertain. The Committee remains very attentive to inflation risks."
The increase brings the benchmark federal funds rate to a target range between 4.75% -5%. The rate sets out what banks charge each other for overnight loans but fuels a multitude of consumer debts such as mortgages, car loans and credit cards.
Alejandro O. Asharabed Trucido
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