US Fed raises interest rates by 50 basis points

The US Federal Reserve raised its benchmark interest rate Wednesday by 50 basis points in its fight against record inflation.

The Federal Open Market Committee (FOMC) unanimously decided to raise the target range for the federal funds rate to between 4.25% and 4.5% -- its highest in 15 years.

The decision comes after the central bank made a June 15 interest rate increase of 75 basis points, the largest in 28 years. It followed that with another hike of 75 basis points on July 27, a 75 basis points hike on Sept. 21 and another 75 basis point increase on Nov. 2.

"Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are contributing to upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks," the FOMC said in a statement.

The Fed's aggressive monetary tightening is a result of record consumer and producer prices which are hovering around their highest in 40 years.

Annual US consumer inflation came in at 7.1% in November, easing from 7.7% in October, according to the figures released Tuesday.