US Fed raises interest rates by another 75 basis points

By Ovunc Kutlu

ANKARA (AA) - The US Federal Reserve raised its benchmark interest rate Wednesday by another 75 basis points to fight inflation.

The Federal Open Market Committee (FOMC) said it decided to raise the target range for the federal funds rate to 2.25% - 2.5% range.

The unanimous decision comes after the central bank made an interest rate increase of 75 basis points June 15 -- the largest hike in 28 years.

The FOMC reiterated that it anticipates "ongoing increases in the target range will be appropriate.

"Recent indicators of spending and production have softened," it said.

The FOMC said it is strongly committed to returning inflation to its 2% objective.

The Fed's aggressive rate hikes come amid rising consumer and producer prices which are hovering around their highest levels in 40 years.

US producer inflation increased 11.3% in June on an annual basis, while consumer inflation rose 9.1%.