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The Guardian - US

Business

Dominic Rushe in New York

Fed raises interest rates to 22-year high as it continues to fight inflation

US Federal Reserve Inflation Interest Rates United States Christopher Waller Economy

New houses are seen for sale in Cold Springs, Nevada, on 28 June 2023. The rate rises have sent mortgage rates and car loan prices soaring. Photograph: Andri Tambunan/AFP/Getty Images

The US Federal Reserve raised interest rates to a 22-year high on Wednesday as it continued its fight against rising inflation.

The decision to increase rates by a quarter-percentage point to a range of 5.25% to 5.5% comes after the Fed paused its rate-rising cycle last month.

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