US Federal Reserve increases benchmark interest rate a quarter point

The US Federal Reserve on Wednesday raised the benchmark interest rate a quarter point, after noting that inflation is moving closer to the central bank’s 2pc target, according to media sources.

The Fed gave no hints that rates might have to rise more quickly if the White House goes ahead with its pro-growth policies, including tax cuts and spending programmes.

The Fed’s policy-setting Federal Open Market Committee voted to raise the key federal funds' rate to a range of 0.75-1.0pc.