The Fed raises interest rates to the highest level since 2007

The Federal Reserve raised interest rates by a quarter of a percentage point to 5.50%, the highest US central bank interest rate since 2007, and the Fed said the Federal Open Market Committee will continue to assess additional information and its implications for monetary policy.

The Fed said it would monitor incoming data and study the impact of rate hikes on the economy "in determining the extent to which additional policy anchoring might be appropriate to reach the 2% inflation target." The Fed said job gains remain solid while describing the economy as growing at a moderate pace, up slightly from the modest pace seen at the June meeting.