Federal Reserve Raises Interest Rates by 25 Basis Points, Opens Door to Pause

Federal Reserve Board Chairman Jerome Powell delivers remarks at a news conference following a Federal Open Market Committee meeting in Washington on May 3, 2023. Anna Moneymaker/Getty Images

The Federal Reserve raised interest rates by 25 basis points on May 3, lifting the benchmark federal funds rate to a range of 5 percent to 5.25 percent, the highest level since September 2007.

The vote to raise rates by a quarter-point was unanimous, according to a statement from the Federal Open Market Committee (FOMC).