The Federal Reserve on Wednesday raised its short-term borrowing rate another 0.25%, escalating the central bank's attack on inflation just two days after the forced sale of First Republic Bank.

The Fed’s 10th consecutive rate increase arrives less than a week after fresh government data showed that U.S. economic growth slowed over the first three months of this year.

Despite the economic turbulence, the central bank appears committed to tightening its grip on prices.

Inflation has fallen significantly from a summer peak though it remains more than double the Fed's target of 2%.

Increases in the Fed's benchmark interest rate have contributed to the financial emergency facing U.S. banks.

As the Fed aggressively hiked interest rates over the past year, the value of long-term Treasury and mortgage bonds dropped, punching a hole in the balance sheets at some banks.

Three of the nation’s 30-largest banks have failed since March. While high interest rates contributed to the collapses, each of the banks also retained a sizable portion of uninsured depositors, who tend to panic without a government backstop for their funds.

In a statement on Wednesday, the Fed affirmed the stability of the financial system but acknowledged the distress would likely cool the lending environment.

"The U.S. banking system is sound and resilient," the central bank said. "Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain."