The Federal Reserve raised interest rates for the ninth time in a row to just under 5%.
Fed policymakers anticipate rates climbing by another quarter-percentage point by the end of this year.
The central bank is concerned about the rising cost of services and high inflation which imposes significant hardship on people.
The Fed is facing scrutiny for its oversight of two failed banks: Silicon Valley Bank and Signature Bank.
A review of how the Fed supervised and regulated these firms is being conducted with a report promised by May 1st.
Senators Elizabeth Warren and Rick Scott have proposed replacing the Fed’s internal inspector general with an outside inspector appointed by the president.
Recent developments are likely to result in tighter credit conditions for households and businesses and weigh on economic activity, hiring, and inflation
On average, members of the rate-setting committee expect the economy to grow 0.4% this year.