Federal Reserve ups US interest rates to highest level in 22 years

The US Federal Reserve raised its benchmark interest rate by a quarter of a percentage point on Wednesday to the highest level in 22 years as it left the door open to further increases this year.

The Federal Open Market Committee lifted the federal funds rate to a new target range of 5.25% to 5.5% with unanimous support, resuming its most aggressive monetary tightening campaign in decades.

Wednesday’s increase followed a brief reprieve at the previous meeting in June, when the FOMC held the benchmark rate steady. At the time, Fed chair Jay Powell indicated the central bank would take a more gradual approach to rate rises to account for months of earlier increases and the fallout of a regional banking crisis this spring. In a statement, the committee said inflation remained “elevated”, jobs gains in recent months had been “robust” and economic activity was expanding “at a moderate pace”.

The committee said it remained “highly attentive to inflation risks”, and would “continue to assess additional information and its implications for monetary policy”.