Fed officials double down on rate rise decision citing high inflation

Federal Reserve officials on Friday defended their decision to press ahead with their monetary tightening campaign this week despite ongoing stress across the US banking sector, citing continued concerns about elevated inflation.

On Wednesday the central bank raised rates by a quarter point for the second time in a row, lifting federal funds rate to a new target range of 4.75 per cent to 5 per cent, even as midsized lenders struggled to weather the fallout from the implosion of Silicon Valley Bank.