The U.S. Federal Reserve's Federal Open Market Committee (FOMC) continued its year-plus slew of rate hikes on Wednesday, May 3, lifting the fed funds rate by 25 basis points to a targeted range of 5%-5.25%. This latest move comes as the U.S. central bank battles stubbornly high inflation while dealing with a string of high-profile bank failures.

The Fed's move was widely expected, but investors and traders were awaiting the accompanying policy statement and Chair Jerome Powell's post-meeting press conference for clues about whether the central bank was mulling a pause after an historic run of rate hikes that's taken the fed funds rate from 0% in early 2022 to today's 5%-5.25%.

In its post-meeting statement, the central bank appeared to soften its language on future rate increases, removing a line on “additional policy firming.” In his press conference, however, Chairman Jerome Powell noted that the policy-setting committee thinks it would take time for inflation to come down, and it would not be appropriate to cut rates.