Fed raises interest rate a quarter-point; 10th hike in past year to fight inflation

The Federal Reserve raised a key interest rate Wednesday by a quarter percentage point, the 10th increase in just over a year that is hitting consumers with higher costs for home mortgages, auto loans and credit card balances.

The central bank said the action was needed to curb inflation that was at 5% in March. Inflation has come down from 8.5% a year ago, but is still more than twice the Fed’s target level.

In a unanimous vote, the Fed’s open market committee raised its borrowing rate to a target range of 5%-5.25%. Its statement omitted previous language that had signaled likely future rate increases.