Washington, Sep 22 (IANS): The Federal Reserve on Wednesday raised interest rates by 75 basis points for a third straight time and indicated that it will keep hiking well above the current level.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 3.25 per cent and anticipates that ongoing increases in the target range will be appropriate," the Federal Reserve said in a statement.

"In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 per cent objective," it added.

According to the Federal Reserve, recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

"Russia's war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks," the central bank asserted.