Federal Reserve raises key US interest rate by 0.75%

Federal Reserve chairman Jerome Powell (Manuel Balce Ceneta/AP)

The US Federal Reserve has raised its benchmark interest rate by 0.75% for the second time in a row in its most aggressive drive in three decades to tame high inflation.

The Fed’s move will raise its key rate, which affects many consumer and business loans, to a range of 2.25% to 2.5%, its highest level since 2018.