The United States Federal Reserve said Wednesday that it is increasing its benchmark interest rate by 0.75 percentage point for the second straight month in a bid to curb inflation.

The announcement came at the end of the monthly two-day meeting of the central bank's policy-making arm, the Federal Open Market Committee.

Consecutive rate hikes of this magnitude have not been seen since the 1990s and the overnight funds rate - what the Fed charges banks to borrow money - is at its maximum level since December 2018.

Thirty years ago, the Fed was concerned about inflation of 2.7 percent. The current rate is 9.1 percent, the highest in four decades.