BREAKING: FOMC hikes rates by 25 basis points

As widely expected, FOMC delivered another 25 basis point rate hike. Fed funds rate was increased from 4.75-5.00% range to 5.00-5.25% - the highest level since June 2006 and the level at which rates peaked back then. 

A line saying that Fed anticipates more policy tightening to attain sufficiently restrictive stance has been removed and that extent to which further tightening is needed will be assessed taking into account previous decisions as well as policy lag. Fed also noted that it considers US banking systems is sound and resilent but tighter credit conditions will likely weight on the economy, hiring and inflation. Balance sheet reduction will continue as planned.

As this was not a quarterly FOMC meeting there were no new economic projections published.