US Federal Reserve hikes interest rate in biggest rise since 1994

Washington, Jun 16: The US Federal Reserve raised its benchmark borrowing rate on Wednesday by 0.75 percentage points.

The move comes as the Fed seeks to combat inflation in the country, which has reached highs not seen for 40 years.

What did the Fed say?

In a statement, the Fed's policy-setting Federal Open Market Committee said despite the interest rate hike, it remains "strongly committed to returning inflation to its 2% objective."

It's the Fed's largest interest rate rise since 1994 - with the US central bank signalling that it expects to make further hikes to the key rate in the future.