US Federal Reserve opts for small rate hike, but sees 'ongoing increases'

The US central bank "anticipates that ongoing increases in the target range will be appropriate", with policymakers still "highly attentive to inflation risks"

Federal Reserve chairman Jerome Powell 

The US Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday evening, yet continued to promise "ongoing increases" in borrowing costs as part of its still-unresolved battle against inflation.

"Inflation has eased somewhat, but remains elevated," the US central bank said in a statement that marked an explicit acknowledgement of the progress made in lowering the pace of price increases from the 40-year highs seen last year.