US Fed announces rate hike of 25 basis points

The Federal Reserve raised its benchmark lending rate on Wednesday, in line with expectations, continuing a hiking cycle to tackle high inflation while warning that recent banking troubles could hit households and businesses.

The quarter-point increase raises the target range to 4.75-5.00 per cent, the Fed announced in a statement, adding that recent banking sector developments "are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation."

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