U.S. Federal Reserve raises interest rates by 25 basis points

The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, citing still elevated inflation as a rationale for what is now the highest U.S. central bank policy rate in 16 years, Reuters reported.

The rate hike, the Fed’s 11th in its last 12 meetings, set the benchmark overnight interest rate in the 5.25 – 5.50 percent range, and the accompanying policy statement left the door open to another increase.