Inflation and Federal Reserve Alert! FOMC decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent.

Source: https://www.federalreserve.gov/monetarypolicy/files/monetary20230726a1.pdf

Wut mean?:

Economic activity is expanding moderately, with strong recent job gains and a low unemployment rate. However, inflation is high.
The Committee's objectives are maximum employment and a 2% inflation rate over the long term.

The federal funds rate target range has been increased to 5-1/4 to 5-1/2 percent to support these goals.

Highest since 2001
The Committee plans to reduce its holdings of specific securities and is determined to bring inflation back to its 2% target.
The Committee will adjust its monetary policy stance based on incoming data, particularly if risks emerge that could obstruct its goals.

Key Decisions:

The interest rate on reserve balances has been raised to 5.4%, effective July 27, 2023.
The Federal Open Market Committee has set directives for maintaining the federal funds rate in the range of 5-1/4 to 5-1/2 percent, among other specific monetary actions.
The primary credit rate has been increased by 1/4 percentage point to 5.5%, effective July 27, 2023. This decision was supported by multiple Federal Reserve Banks.

TLDRS:

FOMC says the economy is growing with significant job gains and low unemployment, but inflation remains high.
The federal funds rate target has been raised to between 5-1/4 to 5-1/2 percent.
Reminder, while banks have the liquidity fairy, 'we' get the promise of 2 more rate hikes this year, Atlanta Fed President Raphael Bostic yet again enrichens himself inappropriately from his position.

To fix one end of their mandate (price stability) from the inflation problem they created, the Fed will continue sacrificing employment (the other end of their mandate) to bolster price stability by continuing to raise interest rates--causing further stress to businesses and households.

Minneapolis Fed President Neel Kashkar says as much when he said: