Top officials of the U.S. central bank raised the benchmark interest rate slightly Wednesday, as the recovering economy no longer seems to need the boost it was getting from ultra-low rates. The Federal Reserve raised its short-term rate a quarter of a percent, to a range between 1 and 1.25 percent. To cope with the recession that started in 2007, the Fed slashed interest rates nearly to zero, a record low, in a bid to cut the cost of borrowing, encourage economic activity and cut unemployment. With the jobless rate down from 10 percent to 4.3 percent, the recovering economy no longer needs such a boost from low interest rates. Wednesday's action is just the latest in a gradual series of rate hikes that are moving interest rates back toward the rates usually seen over the past few decades. Officials worry that keeping rates too low for too long could spark a burst of inflation that could hurt the economy. Fed officials have been trying to get inflation to rise to a low but manageable rate of about 2 percent. The inflation rate remains below this target. Fed officials also said they would cut its huge holding of bonds and other securities later this year. During the recession, the Fed purchased a huge stock of financial products in a complex bid to further boost growth by cutting long-term rates. The plan calls for gradually reducing these holdings in ways that do not disrupt markets.