The US Federal Reserve on Wednesday raised interest rates by a quarter percentage point and signalled that it would raise rates six more times in 2022 in an effort to fight the hottest inflation in 40 years.
The Fed is currently faced with a difficult task: Raise interest rates too quickly and risk tipping the US economy into recession; raise interest rates too slowly and inflation could spiral out of control.
Policymakers led by Fed Chair Jerome Powell voted 8-1 to raise the key interest rate to a target range of 0.25 percent to 0.5 percent. St Louis Fed President James Bullard dissented in favour of a half-point hike.
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