In a unanimous decision, the Fed hiked their benchmark Fed Funds Rate by 25 basis points at their meeting last Wednesday, bringing it to a range of 5.25% to 5.5%. The Fed Funds Rate is the interest rate for overnight borrowing for banks and it is not the same as mortgage rates. When the Fed hikes the Fed Funds Rate, they are trying to slow the economy and curb inflation.

This was the Fed’s eleventh hike since March of last year, though they chose not to hike at their meeting in June to give themselves more time to assess incoming data.

What’s the bottom line? In his press conference following the meeting, Fed Chair Jerome Powell was noncommittal regarding whether the Fed would hike at their next meeting on September 20. However, he sounded less hawkish (hawks are policy makers who favor higher interest rates to keep inflation in check), leaving the door open for a pause in September after previously signaling two hikes were left.

The Fed will be closely monitoring economic data before making their rate decision in September, including a few reports that were released after their meeting last week. The first reading of second quarter GDP showed that the economy grew at a stronger than estimated 2.4% annualized pace, while the latest Jobless Claims figures continue to reflect strength in the labor market. Plus, June’s Personal Consumption Expenditures (which is the Fed’s favored measure of inflation) provided more evidence that consumer inflation is cooling, as detailed below.