The US central bank also indicated that more rate hikes are to come, after having increased from one percent over the past 20 months, now at their highest level since April 2001.
The Fed's open market committee (FOMC) voted unanimously to raise its benchmark Federal funds rate, saying economic growth has rebounded strongly.
"The committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance," an FOMC statement said.
That wording was unchanged from the last Fed meeting chaired by Mr Bernanke's predecessor Alan Greenspan in January, which analysts had taken to mean the Fed was ready to keep raising rates as necessary.
Many analysts said the statement indicates that Mr Bernanke intends to be as tough on inflation as Mr Greenspan or the equally-venerated Fed chairman for much of the 1980s, Paul Volcker.
The statement sent equity markets falling, with Wall Street having harboured hopes that the FOMC would give a clear signal that the rate hikes were coming to an end.
The Dow Jones index of leading shares fell 93.6 points to close at 11,156.
The dollar meanwhile rallied against other major currencies on the prospect of higher US borrowing costs, which would enhance the greenback's appeal for investors.