Federal Reserve policymakers, confronted with a sudden slowdown in the economy despite heightened inflation worries, raised interest rates a quarter-point on Tuesday.
The Fed also said it intended to keep raising rates “at a pace that is likely to be measured,” phrase that markets have interepreted as signaling continued small quarter-point rate increases.
Noting the recent slowdown, the Fed in its statement said, “Recent data suggest that the solid pace of spending growth has slowed somewhat, partly in response to the earlier increases in energy prices.”
