With this third increase in a row, these rates are now in a range of between 1.5 and 1.75%.
The Fed also announced that it expects inflation to be 5.2% this year, against 4.3% projected in March, and will therefore make further hikes at its next meetings in 2022.
At the same time, it anticipates weaker economic growth than expected this year in the United States, at 1.7%, against 2.8% previously.
It also expects the unemployment rate to be higher than expected at 3.7%, against 3.5% previously.
“General economic activity has rebounded,” after contracting in the first quarter, the Fed noted in a statement after its meeting, citing “robust job gains in recent months and an unemployment rate remaining at a low level.
But inflation remains “elevated reflecting pandemic-related supply and demand imbalances, higher energy prices and broader pricing pressures,” she added.
The institution recalls that the invasion in Ukraine and the sanctions have created “additional upward pressure on inflation and weigh on global economic activity”.
Additionally, the lockdowns in China have exacerbated supply chain issues. All of this is slowing down the US economy.
“The Committee is highly attentive to the risks of inflation”, further underlined the Fed.