The Federal Reserve approved another quarter-percentage-point interest rate hike on Wednesday, shortly before signaling that it would likely raise rates again once more in 2023, according to .

What鈥檚 going on: In its ninth rate increase in the past year, the central bank raised the benchmark federal funds rate to a range of between 4.75 and 5%, the highest level in more than 15 years.

• The 鈥渢erminal rate鈥濃�攖he ultimate rate the Fed has set as the target for this full cycle of increases鈥攔emains unchanged from 5.1%.

What they鈥檙e saying:
鈥溾�楾he Committee will closely monitor incoming information and assess the implications for monetary policy,鈥� the FOMC鈥檚 post-meeting statement said. 鈥楾he Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.鈥欌��

• The statement鈥檚 wording marks a departure from previous statements, which had indicated that 鈥渙ngoing increases鈥� would be needed to curb inflation. This is likely a reflection of the recent turmoil in the banking industry.
• The Fed said it was unsure of the long-term effects of that turmoil, though it noted the financial events would probably continue to 鈥渨eigh on鈥� inflation, hiring and other economic activity.

听What鈥檚 next:
鈥淭he next two years鈥� worth of projections 鈥� showed considerable disagreement among [Fed] members,鈥� CNBC reports. 鈥淪till, the median of the estimates points to a 0.8 percentage point reduction in rates in 2024 and 1.2 percentage points worth of cuts in 2025.鈥�

• The Fed鈥檚 next meeting is May 2鈥�3. 听