Fed hikes rates as inflation worries push up bond yields

The US Federal Reserve raised interest rates by 0.25% as inflation concerns and rising bond yields contributed to the decision. This is the 12th rate hike this year, with the federal funds target rate now at 5.25%-5.5%. The Fed also raised the interest rate on excess reserve balances to 5.5%. The move comes amid concerns about inflation, with the PCE price index rising 4.3% year-over-year in August, and the yield on the 10-year Treasury note reaching a 16-year high.