Federal Reserve hikes interest rates 0.25 percentage point

The Federal Reserve is raising its benchmark interest rate a quarter of a percentage point, officials with the central bank said on Wednesday, its eighth consecutive hike as policy makers try to subdue inflation.

The latest increase in the federal funds rate — what banks charge each other for short-term loans — is smaller than the Fed's 0.5 percentage point increase in December as well as a string of three-quarter point moves over the course of 2022.

With the latest increase, the Fed's target interest rate is set in a range between 4.50% and 4.75% — its highest level since late 2007.