URGENT: U.S. Fed resorts to largest rate hike since 1994 to tackle inflation

© Kyodo News

The Federal Reserve on Wednesday decided on its largest interest-rate hike since November 1994 as the United States continues to face its highest inflation in decades, moving ahead with a 0.75 percentage point increase.

Upon concluding a two-day meeting of the policy-setting Federal Open Market Committee, the central bank said it will lift its target range for the federal funds rate to 1.50 to 1.75 percent, following a 0.5 point hike last month.