US interest rates hit highest levels in 22 years

Quarter of a percentage point rise

The Federal Reserve has raised interest rates to the highest level in 22 years, as policymakers voted to raise rates by a quarter of a percentage point to between 5.25% and 5.5%.

This marks the 11th increase since 2022 and comes as the US central bank continues to try and stabilise prices and cool its economy. US stock markets rose after the latest meeting on Wednesday (26 July), in which chair Jerome Powell said policymakers had covered "a lot of ground" after raising rates from near-zero starting last year. However, he hinted at further rises, adding that there was a "long way to go" before inflation might be completely vanquished. "We are going to be going meeting by meeting," he said. "It is certainly possible that we would raise the funds rate again at...