The Federal Open Market Committee announced a widely expected 0.25 percentage point interest rate increase in the Fed funds rate on Wednesday, bringing the benchmark overnight interest rate to between 5.25%-5.50%.

It’s the 11th hike since the Fed began to tighten monetary policy in March 2022 and brings the rate to the highest level in 22 years.

The Fed repeated that “determining the extent of additional policy firming that will be appropriate” to lower inflation to the Fed’s 2% target will depend on inflation as well as economic and financial developments, among other factors.

“Recent indicators suggest that economic activity has been expanding at a moderate pace,” read the statement. “Job gains have been robust in recent months, and the unemployment rate has remained low,” the committee said, repeating previous language, while also noting again that “inflation remains elevated.”

In June, most officials predicted two more rate hikes in 2023. The lack of fresh language to suggest otherwise means the door remains open, which would imply another rate hike in the coming months.

“The Fed has been very clear in their messaging about inflation and the need to boost rates until wage pressures and prices moderate in line with their 2% target. Given this, the 25-bp rate increase is a signal that the Fed remains committed to further rate increases predicated on data,” said Charles Krawitz, chief capital markets officer at Alliant Credit Union.

“After another potential rate increase in September, it is largely assumed that rates will stabilize and then start to head down. While the precise timing of these movements remains conjecture, the overall trajectory seems to be widely embraced.”