The U.S. Federal Reserve today raised the key federal-funds rate to 5%, the 16th consecutive quarter-percentage-point increase.

The move comes as it sees risks of higher inflation but also thinks that some of the upward pressure is temporary.

In its statement, the Fed signaled that it may pause to assess the impact of its string of rate increases.

“Some further policy firming may yet be needed to address inflation risks but the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information,” the Fed said in its statement.