The US central bank has raised interest rates again, despite fears that the move could add to financial turmoil after a string of bank failures.
The financial system is "strong and robust," according to the Federal Reserve, which raised its benchmark interest rate by 0.25 percentage points.
But, it also issued a warning that the effects of the bank failures could hinder future economic growth.
The Fed has increased borrowing costs in an effort to keep prices stable.
But, the banking system is under stress as a result of the substantial increase in interest rates since last year.
Silicon Valley Bank and Signature Bank, two American banks, also failed this month, suc****bing in part as a result of issues brought on by increasing interest rates.
Concerns exist regarding the value of the bonds that banks own since higher interest rates could devalue the bonds.
Banks frequently maintain substantial bond portfolios, which results in their sitting.