The Federal Reserve made its biggest rate hike since 2000 with a half percentage point increase meant to crush soaring inflation in the United States.
The US central bank’s policy-setting Federal Open Market Committee pushed the rate above 0.75 per cent as it works to cool the economy while noting more increases will be appropriate.
Inflation has become an overriding concern after the world’s largest economy saw annual consumer prices jump 8.5 per cent over the 12 months to March — the biggest jump since December 1981.
The committee noted the highly uncertain impact of Russia’s invasion of Ukraine and Western sanctions on Moscow, which are creating additional upward pressure on inflation and are likely to weigh on economic activity.