The US Federal Reserve on Wednesday announced that it raised the policy rate, federal funds rate, by 50 basis points to the range of 4.25-4.5% following the December monetary policy meeting. This decision came in line with the market expectation. 

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

In its policy statement, the Fed reiterated that ongoing interest rate increases will be appropriate to attain a 'sufficiently restrictive policy stance.'

Additional takeaways as summarized by Reuters

"Will take into account cumulative tightening, policy lags and economic and financial developments in setting rate hike pace."

"Inflation remains elevated, Fed is highly attentive to inflation risks."

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

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

"Vote was in favor of policy was unanimous."

Market reaction

The US Dollar Index recovered modestly from the multi-month lows with the initial reaction and was last seen trading flat on the day at around 104.00.