Fed Chairman Warsh: Inflation remains elevated and this committee will deliver price stability

• Fed raised the federal funds rate by 25 basis points to 3.75%-4%.
• Economic activity is expanding at a solid pace, with strong productivity and robust capital investment.
• Inflation remains elevated, with many categories posting increases above 3%, and the Fed is committed to price stability.
• 16 of 18 FOMC members project at least one more rate hike this year, with 8 members seeing the Fed funds rate rising to 4.38% by next year.

Federal Reserve Chairman Kevin Warsh announced a 25 basis point hike in the federal funds rate, setting the target range at 3.75% to 4%. He noted that economic activity is expanding at a solid pace, with resilient spending, strong productivity, and robust capital investment. Despite elevated inflation, the committee is committed to achieving price stability and a timely return to the 2% inflation goal.