The U.S. Federal Reserve has raised its key interest rate by three-quarters of a percentage point for the fourth consecutive time as it steps up its effort to cool soaring inflation.

After a meeting of the Federal Open Market Committee(FOMC) on Wednesday, the Fed said in a statement that it raised its benchmark short-term interest rate by zero-point-75 percentage points.

The new target range is three percent-75 percent to four percent, the highest since January 2008 and one percentage point higher than South Korea's three percent.

The latest hike was widely expected in the market as consumer prices in the U.S. remained high with an eight-point-two percent on-year gain in September.

After the FOMC meeting, Federal Reserve Chairman Jerome Powell said in a press conference that the Fed could slow the pace of hikes as soon as next month, although he added that it is "premature" to speculate whether the Fed will pause its rate hike campaign. He added that the ultimate rate level is likely to be higher than previously expected. 
 
The Bank of Korea’s benchmark rate is now 100 basis points lower than the Fed’s, leading to expectations that the BOK will certainly raise its rate for the sixth consecutive time on November 24 in an attempt to prevent capital outflow and arrest the depreciation of the won.