As anticipated the Federal Reserve announced that the"committee decided to maintain the target range for the federal funds rate at 5 to 5 ¼%". However, the core message as expressed in today's statement and press conference by Chairman Powell was that its monetary policy will remain restrictive, hawkish, and most likely include two more rate hikes before the end of the year.
A significant component of today's message was that the purpose of maintaining the Fed's benchmark rate was not to signal an end to rate hikes but rather to give Federal Reserve members time to"assess additional information and implications for its monetary policy". The dot plot released today indicates that 9 of the 18 participants are projecting Fed funds rates to be at 5.625%, two at 5.875%, and one at 6.125% by the end of 2023. The remaining six votes project rates at 5 ½% or 5% by the end of the year.