Fed approves interest rate hike, signals one more to come this year

The Federal Reserve on Wednesday approved its first interest rate hike in more than three years and indicated another to come, as part of an effort aimed at combating inflation brought on by spiraling oil prices and other factors. In a move that markets widely anticipated, the central bank's Federal Open Market Committee voted 12-0 to increase its key interest rate by a quarter percentage point, or 25 basis points. The move brought the overnight funds rate to a target range of 3.75%-4%. "Inflation remains elevated," the committee said in its brief post-meeting statement. "Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability.