the minutes of the may 23 fomc meeting revealed uncertainty about how much more policy tightening may be appropriate with some fomc participants warning that a failure to raise the federal debt limit in a timely manner will threaten significant financial system disruptions and lead to tighter financial conditions   the committee unanimously decided to increase the federal funds rate by 25 basis points to a target range of 5 to 525 in may the move was highly discounted by the market   some participants stressed it was crucial that the statement not signal the likelihood of rate cuts this year or rule out further hikes shifting to a datadependent approach   the economic forecast prepared by the staff for the may fomc meeting forecasted a mild recession starting later this year followed by a modestly paced recovery   fed participants highlighted that inflation continued to be elevated in march and is declining slower than they had expected   concerning the regional bank tensions that arose after the failures of silicon valley bank and signature bank fed officials believe the us banking system is solid and resilient deposit outflows from small and midsized banks largely stopped in late march and april   fomc members anticipate that recent developments in the banking sector could likely result in tighter credit conditions for households and businesses which would weigh on economic activity hiring and inflation   market reactions stocks were weaker on wednesday with the spdr sp 500 etf trust losing 08 and the invesco qqq trust down 07 treasury yields moved higher for the day the ratesensitive twoyear yield rose by 2 basis points to 434 while the 10year yield held steady at 37   the dollar was the outperformer of the day among major asset classes with the invesco db usd index bullish fund etf surging 04 for the session read next top 4 energy stocks that could blast off this quarter