US Federal Reserve raises key interest rate again

The US Federal Reserve has announced that it will raise its key interest rate by a quarter of a percentage point.

Fed Chair Jerome Powell made the announcement in Washington on Wednesday.

This is the tenth consecutive time policymakers have raised the rate in an effort to bring prices under control. However, the inflation rate remains well above their goal of 2 percent.

Policymakers have also been concerned about the stability of regional banks. Earlier this week, First Republic Bank became the latest to be sold off.

Still, Powell said the system is "sound and resilient" and, after so many hikes, he opened the door to a pause.

Powell said, "We are saying that, in determining the extent to which additional policy firming may be appropriate to return inflation at 2 percent over time, the committee will take into account certain factors. So that's a meaningful change."

Powell and his colleagues have wrestled for months with how they can bring down inflation without causing a recession. Many of their predecessors have been unable to strike that balance. However, Powell said it is possible that "this time is different."