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The Federal Reserve raised interest rates by a quarter percentage point on Wednesday (May 3). It is the tenth consecutive increase and brings the interest rate to 5 to 5-1/4 percent, the highest it has been in 16 years, as the Fed tries to get inflation down to two percent.
The Federal Open Market Committee removed language about future rate hikes from its statement about the rate hikes.
"That's a meaningful change, that we're no longer saying we anticipate" more rate hikes Fed Chair Jerome Powell said at a news conference.
However, Powell didn't rule out another rate hike when the committee meets in June.
"Our future policy actions will depend on how events unfold," he added. "We are prepared to do more if greater monetary policy restraint is warranted."
Powell said it is possible to curb inflation without tipping the economy into a recession.
"The case for avoiding a recession is, in my view, more likely than having a recession," he said, noting that hiring remains strong.
The stock market reacted negatively to the rate hike, with the Dow Jones Industrial Average, the Nasdaq, and the S&P 500 all posting losses for the day.