WASHINGTON - The Federal Reserve has raised US interest rates for the 12th straight time, taking them to the highest level in more than four years and indicating more hikes will be needed to keep inflation at bay.
The central bank's policy-setting Federal Open Market Committee voted unanimously to raise the benchmark federal funds rate charged on overnight loans between banks a quarter percentage point to 4 per cent, extending a campaign of rate rises that it initiated in mid-2004.
The last time rates were at 4 per cent was in June 2001.
In a statement outlining its widely expected decision, the Fed described monetary policy as accommodative - its way of saying more hikes are needed - and said the economy was still growing strongly. That would enable it to handle the higher borrowing costs the Fed feels are needed to control prices.
- REUTERS
Fed raises US rates
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