Fed hikes rates by a quarter percentage point, indicating increases is near an end  

• The Federal Reserve on Wednesday enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end. Along with its ninth hike since March 2022, the rate-setting Federal Open Market Committee noted that future increases are not assured and will depend largely on incoming data.
• That wording is a departure from previous statements, which indicated “ongoing increases” would be appropriate to bring down inflation.  While comments Fed Chair Jerome Powell made during a news conference were taken to mean that the central bank may be nearing the end of its rate-hiking cycle, he qualified that the inflation fight isn’t over.
• Powell acknowledged that the events in the banking system were likely to result in tighter credit conditions, and the central bank’s tone has softened. Stocks initially rose after the Fed’s decision but slumped following Powell’s remarks.
• During the news conference, Powell said the FOMC considered a pause in rate hikes in light of the banking crisis but ultimately unanimously approved the decision to raise rates due to intermediate data on inflation and the strength of the labor market.
• The increase takes the benchmark federal funds rate to a target range between 4.75%-5%.

 (Source: CNBC)