US Fed Lifts Rates To Highest Since 2001 And Hints At More To Come

The Fed also hinted at the possibility of more monetary tightening ahead.

The US Federal Reserve raised its benchmark lending rate on Wednesday to the highest level since 2001 to tackle above-target inflation, and signaled the possibility of further increases ahead.

The quarter percentage-point rise lifts the key lending rate to a range between 5.25 percent and 5.5 percent, the US central bank said, adding that it will "continue to assess additional information and its implications for monetary policy."

The rate-setting Federal Open Market Committee (FOMC) used similar language when it voted to hold rates steady in June, and the latest statement suggests that policymakers are mulling another pause at their next meeting in September.