Central bankers in the US have decided to stay on the path they have chosen to fight inflation. They have raised interest rates again.

Federal Reserve Chair Jerome Powell made the announcement in Washington on Wednesday.

The policymakers have managed to slow inflation through a series of interest rate hikes. This is the ninth straight rise since March 2022. This time, they raised the rates by a quarter of a percentage point.

Higher rates have pushed down the value of investments at some institutions, leaving customers in a panic. A run on deposits earlier this month drove Silicon Valley Bank and Signature Bank to collapse.

Powell admitted that the situation prompted policymakers to consider a pause in their rate hikes. However, they decided to press ahead.

Powell said, "Our banking system is sound and resilient, with strong capital and liquidity. We will continue to closely monitor conditions."

Powell added that developments in that system will put further stress on the economy. However, he said inflation remains "elevated" and that he and his colleagues are committed to bringing prices down.

He added that he does not expect them to cut rates this year.