US Federal Reserve raises interest rates by 50 basis points

By Ovunc Kutlu

ANKARA (AA) - The US Federal Reserve increased its benchmark interest rate by 50 basis points on Wednesday after the conclusion of its two-day meeting.

The central bank's aggressive move, the steepest rate hike since 2000, carried the benchmark rate to a range of 0.75% to 1%, from its previous level of 0.25% to 0.5%, in order to fight against record-high inflation.

"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures," the Federal Open Market Committee (FOMC) said in a statement.

Annual consumer inflation in the US rose 8.5% in March, marking the largest 12-month increase since December 1981, according to the US Department of Labor.