Fed Raises Rates by Quarter Point, Signaling End of Tightening Cycle

Federal Reserve Chair Powell indicates inflation is easing

Five key takeaways from the FOMC decision and press conference

WASHINGTON - The Federal Reserve raised interest rates by a quarter point Wednesday, marking the first increase since March and signaling an end to the central bank's aggressive tightening cycle.

The move, which had been widely anticipated, brings the Fed's benchmark interest rate to a target range of 4.5% to 4.75%, the highest level since October 2007.

In a press conference following the decision, Fed Chair Jerome Powell indicated that the central bank is becoming more comfortable with the pace of inflation, which has cooled in recent months but remains well above the Fed's 2% target.

"Inflation remains elevated, but it is coming down," Powell said. "We anticipate that ongoing rate increases will bring inflation down to our 2% goal over time."

Here are five key takeaways from the FOMC decision and Powell's press conference:

1. The Fed raised interest rates by a quarter point, as expected.
2. The Fed indicated that it is becoming more comfortable with the pace of inflation.
3. The Fed is still committed to bringing inflation down to its 2% target.
4. The Fed is likely to continue raising rates in the coming months, but at a slower pace.
5. The Fed's decision is a sign that the central bank is nearing the end of its tightening cycle.