URGENT: Fed raises key rate by another 0.25 point following pause last month

The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by another 0.25 percentage point following a pause in June, recognizing the need to do more to contain inflation.

The increase, announced after a two-day policy meeting, brings the federal funds rate, which banks charge each other for overnight borrowing, to a new target range of between 5.25 percent and 5.5 percent -- a 22-year high.

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