The US Federal Reserve on Wednesday raised its benchmark interest rate again by 3 quarters of a percentage point (0.75%) to a range between 2.25% and 2.50%, and said more increases would be needed in its ongoing battle to curb mounting price pressures.

This is the second straight increase of 75 basis points, and the fourth rate hike this year, as US central bank governors move aggressively to calm the strongest increase in inflation in more than 4 decades, to avoid a recession in the world's largest economy.

The Fed noted that the data showed "weak spending and production" despite the strong increase in job creation.

The Fed confirmed that it is "strongly committed" to bringing inflation back to the 2% target.

The US Federal Reserve considered that Russia's war against Ukraine is causing enormous human and economic difficulties, and said in a statement, "The war and related events create additional upward pressure on inflation and affect global economic activity."

He added, "The Open Market Committee seeks to achieve maximum employment, while targeting an inflation rate of 2% in the long term. In support of these objectives, the Committee decided to raise interest rates by 75 basis points."

He stressed that he will continue to reduce his holdings of treasury bonds, agency debt and agency mortgage-backed securities, and the US Federal Open Market Committee will continue to monitor the market, according to the statement.

And he concluded, "We are ready to adjust the monetary policy position as appropriate if risks arise that may impede achieving the committee's objectives."

In the Arab Gulf, the Qatar Central Bank decided to raise the lending interest rate by 50 basis points, and the deposit interest rate by 75 basis points.

The Central Bank of Kuwait also announced that it decided to raise the discount rate by a quarter of a percentage point to 2.50% from 2.25% as of tomorrow.

Basel Al-Haroun, Governor of the Central Bank of Kuwait, announced in a press statement that it was also decided to make an adjustment of varying rates in the money market intervention rates currently applied to all periods of the interest rate structure.

He said that this includes repurchase operations (repo), the bonds and securitization of the Central Bank of Kuwait, the system for accepting time deposits, and direct intervention instruments, in addition to public debt instruments.

The Central Bank of Bahrain decided to raise the basic interest rate on one-week deposits by 75 basis points.