The Federal Reserve raised rates 25 basis points (bps) on Wednesday, citing high inflation.

This marks the 11th rate hike in 12 meetings, raising the overnight rate to 5.25%–5.50%.

Chair Jerome Powell suggested that the Fed may raise the funds rate at the September meeting if data warrants it, or hold steady if data is needed.

The Fed will decide monetary policy meeting-by-meeting. CME FedWatch reported a 22% likelihood of a September raise in afternoon trading, while rate futures traders expect a 32% 25-bps raise at the November policy meeting.