US Fed hikes interest rates by 0.25%

The US Federal Reserve did what was expected. It hiked interest rates by 25 basis points to 5.25%, reports CNBC-TV18.

The Federal Open Market Committee added that any further increases depends on future information about the prospects for growth and inflation.

Investors interpreted the language, as a suggestion that the Fed is contemplating a breather after nudging rates higher at every meeting for two years.

The next milestone in gauging the Fed's intentions will come in three weeks, when Chairman Ben Bernanke delivers his semi-annual testimony to the Congress. Between now and then, policy makers will get reports on employment, producer and consumer prices.