The Fed Jacks Key Rate Up Half-Point As Inflation Surges

The Federal Reserve raised its benchmark interest rate by a half-point Wednesday, in a strong, but expected move to slow surging inflation even as economic growth went negative in the first quarter.

The central bank is expected to continue raising the rate through the end of the year after holding it at or near zero for several years. It normally raises or lowers the rate in quarter-point increments, and the half-point increase, which followed a quarter-point boost in March, was the biggest jump since May, 2000. The current federal funds target rate is between...