The US Federal Reserve ended its two-day monetary policy meeting on the 3rd and announced another 25 basis points increase in the target range of the federal funds rate to between 5% and 5.25%. This is the 10th rate hike by the Federal Reserve since entering the current rate hike cycle in March 2022, with a cumulative rate hike of 500 basis points. In a statement released on the same day, the Federal Reserve stated that economic activity in the United States expanded moderately in the first quarter, with strong job creation in recent months, low unemployment rates, and high inflation. The US banking system is healthy and resilient, and the tightening of credit conditions for households and businesses is likely to put pressure on economic activity, employment, and inflation. The extent of these impacts remains uncertain. The statement states that the Federal Reserve's Open Market Committee remains highly concerned about inflation risks. In order to achieve employment and inflation goals, members of the Open Market Committee unanimously agreed to raise the federal funds rate target range to 5% to 5.25%. The Federal Reserve will continue to reduce its holdings of US treasury bond bonds and institutional bonds in accordance with the previously announced plan, and is committed to reducing the inflation rate to the target level of 2%. Federal Reserve Chairman Powell stated at a press conference held after the meeting that the monetary policy meeting that ended that day did not make a decision to suspend interest rate hikes. If more restrictive monetary policy is needed, the Federal Reserve is prepared to do so. The fall in inflation will take some time, and it is likely that a rate cut will be considered appropriate after further weakening of demand and job markets. Powell also stated that since early March, the overall situation of the US banking industry has improved, and the US banking industry is healthy and resilient. The Federal Reserve will continue to monitor the banking industry's situation, committed to learning from the banking crisis and preventing similar situations from happening again. (New News Agency)