URGENT: U.S. Fed hikes key interest rate by 0.25 percentage point

The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 0.25 percentage point, pressing on with its aggressive monetary tightening campaign to curb decades-high inflation despite further financial turmoil following the collapse of California-based First Republic Bank.

Another increase brings the federal funds rate, which banks charge each other for overnight borrowing, to a new target range of 5 to 5.25 percent.

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