The US Federal Reserve on Wednesday announced that it raised the policy rate, federal funds rate, by 75 bps to the range of 3.75-4% following the November 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.

Market reaction

The dollar came under renewed selling pressure and the US Dollar Index declined below 111.00 with the initial reaction.

Key takeaways from policy statement

"Will take into account cumulative tightening, policy lags, and economic and financial developments in determining pace of rate hikes."

"Fed anticipates ongoing interest rate increases will be appropriate to attain a sufficiently restrictive policy stance to return inflation to 2% over time."

"Inflation remains elevated."

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

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

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

"Prepared to adjust policy as appropriate."

"FOMC is highly attentive to inflation risks."

"Vote in favor of policy was unanimous."