U.S. Fed raises rates by three-quarter point amid inflation surprises

WASHINGTON. KAZINFORM The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points, marking the sharpest rate hike since 1994, as data released in recent days indicated inflation showed no clear sign of easing, Xinhua reported.

«Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,» the Fed said in a statement after a two-day policy meeting, adding that the Fed is «highly attentive to inflation risks.»

The Federal Open Market Committee (FOMC), the Fed's policy-making body, decided to raise the target range for the federal funds rate to 1.5 to 1.75 percent and «anticipates that ongoing increases in the target range will be appropriate.»

The statement showed that 10 committee members voted for the decision and one voted against it. Esther George, president of the Federal Reserve Bank of Kansas City, preferred a half-point rate hike.