The central bank's aggressive move, the steepest rate hike since 2000, carried the benchmark rate to a range of 0.75% to 1%, from its previous level of 0.25% to 0.5%, in order to fight against record-high inflation.
"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures," the Federal Open Market Committee (FOMC) said in a statement.
Annual consumer inflation in the US rose 8.5% in March, marking the largest 12-month increase since December 1981, according to the US Department of Labor.
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