Fed raises US interest rates by 25 bps in opening bid to curb inflation

The interest rate path shown in new projections by policymakers is tougher than expected, reflecting Fed concern about inflation that has moved faster

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and projected its policy rate would hit a range between 1.75% and 2% by year's end in a newly aggressive stance against inflation that will push borrowing costs to restrictive levels in 2023.

In a new policy statement marking the end of its full-on battle against the coronavirus pandemic, the U.S. central bank flagged the massive uncertainty the economy faces from the war in Ukraine and the ongoing health crisis, but still said "ongoing increases" in the target federal funds rate "will be appropriate" to