The Federal Reserve raised its benchmark interest rate on Wednesday. Chairman Kevin M. Warsh declined to say how much further rates might need to rise.
The central bank is trying to slow inflation without tipping the economy into recession. Officials described the decision as a measured step.
Warsh said the path of future increases will depend on incoming economic data. He avoided committing to a specific target for the federal funds rate.
Markets reacted with caution after the announcement. Investors are watching for signals about the pace of future hikes.
The Fed has raised rates multiple times over the past year. Inflation remains above the central bank’s 2 percent target.
Higher borrowing costs are already affecting mortgages, credit cards, and business loans. Consumer spending has shown signs of cooling.
Warsh stressed that the Fed will remain flexible. He said policy will adapt as new inflation and employment figures arrive.
