URGENT: U.S. Fed approves 0.25 percentage point hike in key interest rate

The U.S. Federal Reserve on Wednesday approved a 0.25 percentage point hike in its benchmark interest rate, continuing with its monetary tightening campaign in an attempt to quash inflation despite recent concern over the stability of the banking system.

The decision lifts the federal funds rate, which banks charge each other for overnight borrowing, to a new target range of 4.75 to 5.00 percent.