Federal Reserve hikes rates, leaves door open to more tightening

The target range for the Fed funds rate was raised by 25 basis points to 5.25-5.50% - a 22-year high.

In its policy statement, the Federal Open Market Committee, the central bank's main decision-making body, said: "The Committee will continue to assess additional information and its implications for monetary policy."

Policymakers also described the jobs market as "robust" over recent months, unemployment as low and inflation as "elevated".

"The Committee is strongly committed to returning inflation to its 2 percent objective," it added.

On the flip-side, tighter credit conditions were likely to weigh on economic activity, the FOMC said, although the magnitude of their effect remained "uncertain".

Reduction of the Fed's holdings of Treasury securities and agency debt, and agency mortgage-backed securities would continue as previously announced.

Wednesday's decision was unanimous.

Fed chairman Jerome Powell was set to begin his press conference at 1930 BST.

Initial market commentary described the FOMC statement as not dovish in any way on purpose, in particular in order to avoid any unwanted easing in financial conditions.