US Fed hikes interest rates by 25 bps

Fed raises rates as job gains, firming inflation stoke confidence

The US Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.

The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75% to 1.00% marked one of the Fed's most convincing steps yet in the effort to return monetary policy to a more normal footing.

However, the Fed's policy-setting committee did not flag any plan to accelerate the pace of monetary tightening. Although inflation is "close" to the Fed's