The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, resuming its campaign to elevate borrowing costs and crush inflation after a brief pause in June.

The unanimous decision puts the key benchmark federal funds rate at a range of 5.25% to 5.5%, the highest since 2001, further restricting economic activity as the borrowing costs for homes, cars and other items march higher.

It marks the 11th rate increase aimed at combating high inflation since policymakers began tightening in March 2022.

Although inflation has eased from a peak of 9.1%, it remains above both the pre-pandemic average and the Fed's 2% target rate.

SILVER LINING OF HIGHER INTEREST RATES: SAVINGS ACCOUNT RATES

Core prices, which exclude the more volatile measurements of food and energy, are also running at a pace more than double the Fed's goal, pointing to strong underlying price pressures that are still bubbling beneath the surface.

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