the federal reserve raised the fed funds rate by 25 basis points to a range of 5525 wednesday delivering the eleventh hike in the tightening cycle and bringing the cost of borrowing to the highest since august 2007 the us banking system is sound and resilient the federal open market committee said in a statement stricter credit conditions for households and businesses will likely have a negative impact on economic activity employment and inflation the fomc said the committee said it will closely monitor incoming data and consider the cumulative tightening of monetary policy the lags with which monetary policy affects economic activity and inflation and economic and financial developments in determining the extent to which additional policy firming may be appropriate to return inflation to 2 over time the fed removed the phrase in determining the extent of future increases in the target from its may policy statement the us stock market slightly fell in the minutes after the statement and before fed chair jerome powell began his press conference with the spdr sp 500 etf trust spy falling by 01 the spdr dow jones industrial average etf dia fell by 006 while the invesco qqq trust qqq rose by 015  treasury yields held steady with the 10year yield firm at 338 the us dollar weakened with the us dollar index which is tracked by the invesco db usd index bullish fund etf uup down 01 the eurusd pair which is tracked by the invesco currecyshares euro currency trust fxe rose 01 to 11066 read also former dallas fed president robert kaplan explains why the central bank needs to pause rate hike