The Federal Reserve raised the federal funds rate a widely expected quarter-point, its 10th consecutive hike, to a range of 5% to 5.25% and signaled it may pause additional increases. The decision was unanimous.

The FOMC statement removed language saying it still “anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”

Instead, the Fed softened the rate guidance in a way consistent with past pauses, saying “in determining the extent to which additional policy firming may be appropriate,” officials will study how the economy, inflation and financial markets behave in the coming weeks and months.

One could argue it is more of a “hawkish” pause since it doesn’t suggest whether policy easing may be appropriate.

There was some speculation the Fed might pause rate hikes in response to recent banking failures, including Silicon Valley Bank and First Republic Bank.

The Fed added that it maintains its plans to shrink the balance sheet each month by as much as $60 billion for US Treasuries and $35 billion for mortgage-backed securities, a move which helps drain liquidity from the financial system in an effort to slow inflation.