US Fed Raises Rates as Inflation Remains Elevated
The Federal Open Market Committee raised the federal funds target range to 3.75%-4%, saying the move supports its dual objectives of maintaining maximum employment and achieving price stability.
The decision received unanimous backing, with all 12 voting members supporting the increase.
"Inflation remains elevated," the Fed said, explaining that the latest policy move is intended to encourage a "timelier return" to its 2% inflation target.
"The Committee will deliver price stability," it added.
Recent government figures showed that consumer prices in the US continued to run above the Federal Reserve’s target in August.
The Consumer Price Index increased 0.4% from the previous month, accelerating from the 0.1% monthly rise recorded in July.
On an annual basis, consumer inflation reached 3.4%, remaining at the same level as in July.
Underlying inflation, which removes food and energy costs because of their volatility, slowed to 2.4% annually from 2.5%. However, the core measure increased 0.3% on a monthly basis.
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