The integer quantum anomalous Hall (QAH) effect is a lattice analog of the quantum Hall effect at zero magnetic field. This striking transport phenomenon occurs in electronic systems with topologically nontrivial bands and spontaneous time-reversal symmetry breaking. Discovery of its putative fractional counterpart in the presence of strong electron correlations, i.e., the fractional quantum anomalous Hall (FQAH) effect, would open a new chapter in condensed matter physics. Here, we report the direct observation of both integer and fractional QAH effects in electrical measurements on twisted bilayer MoTe$_2$. At zero magnetic field, near filling factor $ν= -1$ (one hole per moiré unit cell) we see an extended integer QAH plateau in the Hall resistance $R_\text{xy}$ that is quantized to $h/e^2 ± 0.1 \%$ while the longitudinal resistance $R_\text{xx}$ vanishes. Remarkably, at $ν=-2/3$ and $-3/5$ we see plateau features in $R_\text{xy}$ at $3h/2e^2 ± 1\%$ and $5h/3e^2 ± 3\%$, respectively, while $R_\text{xx}$ remains small. All these features shift linearly in an applied magnetic field with slopes matching the corresponding Chern numbers $-1$, $-2/3$, and $-3/5$, precisely as expected for integer and fractional QAH states. In addition, at zero magnetic field, $R_\text{xy}$ is approximately $2h/e^2$ near half filling ($ν= -1/2$) and varies linearly as $ν$ is tuned. This behavior resembles that of the composite Fermi liquid in the half-filled lowest Landau level of a two-dimensional electron gas at high magnetic field. Direct observation of the FQAH and associated effects paves the way for researching charge fractionalization and anyonic statistics at zero magnetic field.