US Federal Reserve hikes interest rates by 0.75 points, largest increase since 1994

The Federal Reserve raised its target interest rate by 3-quarters of a percentage points on Wednesday to stem a unruly surge in inflation, and projected a slowing economy and rising unemployment in the coming months .

The rate highest was the biggest made by the U.S. central bank since 1994, and was delivered after recent data showed little progress in its inflation battle.

U.S. central bank officials flagged a faster path of increases in borrowing costs to come as well, more closely aligning monetary policy with a rapid shift this week in financial market views of what it will take to bring price pressures under control.

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