Customers use ATMs at a Citibank branch in the Jackson Heights neighborhood of the Queens borough of New York City, U.S. October 11, 2020. REUTERS/Nick Zieminski

March 16, 2022

(Reuters) – Citigroup Inc and Wells Fargo & Co said on Wednesday they were raising their base lending rates, hours after the U.S. Federal Reserve increased its benchmark interest rate by a quarter of a percentage point.

Both banks said they were lifting their base rates to 3.5% from 3.25%, effective Thursday.

The Federal Reserve on Wednesday raised interest rates in order to tame runaway inflation, and signaled it would begin to aggressively wean the economy off pandemic-era measures to curb decades-high inflation.

The central bank signaled it would push the key federal funds rate to a range of 1.75% to 2.00% by the end of 2022.

(Reporting by Niket Nishant in Bengaluru and Elizabeth Dilts Marshall in New York; Editing by Bernard Orr)

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