The US Federal Reserve raised its benchmark interest rate by a quarter point to 5 percent on Wednesday, marking the 16th straight increase approved unanimously by the Federal Open Market Committee since June 2004, when the rate stood at a 40-year low of 1 percent.
Markets had anticipated the move, but the Fed's path forward remains uncertain. Some analysts believe policymakers will pause to evaluate the cumulative effect of prior hikes, while others contend that rates must climb further to keep inflation in check.
The FOMC statement offered flexibility rather than firm guidance, noting that any additional tightening would depend on incoming economic data and how conditions align with the Fed's projections for moderate growth and contained inflation.
The committee acknowledged that growth had been strong early in the year but expected it to ease to a more sustainable pace, partly due to a cooling housing market and elevated energy costs.
Fed Chair Ben Bernanke had indicated in recent congressional testimony that a pause was possible at some point, though he stressed it would not automatically signal the end of the tightening cycle. Financial markets have grown uneasy over limited signs of an economic slowdown.
Historical summary. TurkishPress restated this wire report, first published in May 2006, in its own words.