3rd LD Writethru: U.S. Fed raises interest rates by half point, ramping up inflation fight

WASHINGTON, May 4 (Xinhua) -- The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by a half percentage point, marking the sharpest rate hike since 2000, as it takes more aggressive steps to rein in the highest inflation in four decades.

The Federal Open Market Committee (FOMC), the Fed's policy-making body, decided to raise the target range for the federal funds rate to 0.75 to 1 percent, the Fed said in a statement after a two-day policy meeting.