Federal Reserve's FOMC Statement and Expectations for Interest Rate Hike

The Federal Reserve has issued its FOMC statement, indicating that economic activity has been expanding at a moderate pace with robust job gains and low unemployment. However, inflation remains elevated. The Committee has decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent in order to achieve maximum employment and 2 percent inflation over the longer run. They will continue to assess additional information and adjust monetary policy as necessary. The Committee is strongly committed to returning inflation to its 2 percent objective.