Federal Reserve makes biggest US interest rate hike since 2000

Chairman Jerome Powell speaks during a news conference at the Federal Reserve (Alex Brandon/AP)

The Federal Reserve has intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by half a percentage point — its most aggressive move since 2000.

The increase in the Fed’s key rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago.