Federal Reserve System hikes rate: Read the statement

The United States Federal Reserve raised interest rates by three-quarters of a percentage point, but said future increases could be made in smaller steps.

The official statement of the U.S. Federal Reserve can be found here.

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Spending and production have been growing recently. The unemployment rate has not gone up in recent months. Higher food and energy prices, as well as supply and demand imbalances, have caused inflation to remain elevated.

Russia is fighting a war against Ukraine. The war and related events are putting downward pressure on inflation. The committee pays attention to inflation risks.

The Committee wants maximum employment and inflation at the rate of 2% over the long run. The target range for the federal funds rate was raised in support of these goals. In order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 per cent over time, the Committee expects to see an increase in the target range. The pace of future increases in the target range will be determined by the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. The Committee will continue to reduce its holdings of Treasury securities and agency debt and agency mortgage-backed securities as outlined in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is determined to return inflation to its goal.

The Committee will keep a close eye on incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy if necessary. A wide range of information will be taken into account by the Committee, including readings on public health, labor market conditions, inflation pressures and inflation expectations.

The monetary policy action was voted on by the Chair, John C. Williams, Vice Chair, Michael S. Barr and Lael Brainard.