Biggest rise in US rates for more than 20 years

Jerome Powell has announced the biggest interest rate rise in 22 years and warned of further punishing increases to come as the US Federal Reserve battles to control rampant inflation in the world’s largest economy. The central bank raised rates in America from 0.5pc to 1pc in its first increase of more than 0.25 points since 2000. Mr Powell, the Fed’s governor, admitted that inflation was “much too high” and said that further 0.5 point increases were likely.

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