Another push for the benchmark interest rates has been added with the Fed implementing another 75bps increase.

"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures."

The Fed Open Marketing Committee said.

On top of a 75bps hike witnessed last month and some smaller increases from May and March, the Fed has now raised its policy rate by nearly 225bps this year alone. The policy rate is now at the level many were speculating about and also at a neutral economic level.

There was also very little guidance about the steps the Fed may be taking next and a decision will depend heavily on whether the following economic data shows inflation slowing in other sectors. Consumer prices have risen to levels of nearly 9.1% and for this, many expect more raises to come leading up to the September meeting.

"From here, it is possible that the Fed slows its tightening pace, reassured by the likely peaking of inflation and pullback in inflation expectations as oil prices have fallen. However, with the labor market still a picture of strength, wage growth still uncomfortably high, and core inflation set to decline at a glacially slow pace, the Fed certainly cannot stop tightening, nor can it downshift gears too much."

Seema Shah, the chief global strategist at Principal Global Investors, said.