For the 10th time since early 2022, the Federal Reserve opted to hike rates to fight inflation. The quarter-percentage-point hike announced Wednesday, May 3, puts the interest rate target range between 5% and 5.25%, the highest since 2007.

The latest rate hike falls in line with the Open Market Committee’s projection of a 5.1% effective rate for 2023, which may indicate the end of the most aggressive rate hike campaign in decades. Meanwhile, consumer prices are still 5% higher than a year ago as of March, far beyond the Fed’s target 2% inflation rate.

The past two rate hikes executed by the Fed have come amid significant disruption in the banking sector. Fed Chair Jerome Powell had said after the last hike in March that the banking crisis could have the same effect as an additional rate hike due to tightening credit by the banks.

“That means that monetary policy may have less work to do. We simply don’t know,” Powell said at the time.

Instead of indicating more rate hikes could be necessary at future meetings, the May committee statement noted that it will be monitoring lagging effects of the rate hikes and economic conditions.

“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” which are maximum employment and stable prices, the statement read.

Financial conditions are in flux, facing multiple challenges this spring. There is continued uncertainty with regional banks: Short sellers have taken aim at several regional institutions despite JPMorgan CEO Jamie Dimon declaring “this part of the crisis is over.”

Powell also declared Wednesday that the banking system is “sound and resilient.”

In addition to the banking woes, the debt ceiling crisis also threatens economic stability if a deal in Washington is not reached before June 1, when the Treasury Department now says the U.S. will run out of funds.