The US Federal Reserve on Wednesday announced that it raised the policy rate, federal funds rate, by 75 bps to the range of 3-3.25%. This decision came in line with the market expectation. 

Follow our live coverage of the Fed's policy announcements and the market reaction.

Market reaction

With the initial reaction, the US Dollar Index jumped to its highest level in two decades above 111.50, gaining more than 1% on a daily basis.

Key takeaways from policy statement

"Fed is highly attentive to inflation risks, strongly committed to returning inflation to 2%."

"Job gains have been robust, unemployment rate has remained low."

"Recent indicators point to modest growth in spending and production."

"Inflation remains elevated, reflecting pandemic-related imbalances, higher food and energy prices, broader price pressures."

"War in Ukraine creating additional upward pressure on inflation, weighing on global economic activity."

"Prepared to adjust policy as appropriate."

"Vote in favor of policy was unanimous."