The decision to increase rates came as the Fed noted inflation remains elevated, while U.S. economic activity has been expanding at a moderate pace and job gains have been robust in recent months. The Fed's statement also acknowledged tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation but noted the extent of these effects remains uncertain. The next monetary policy meeting is scheduled for September 19-20, with CME Group's FedWatch Tool currently indicating a 79.1 percent chance the Fed will leave rates unchanged.