US Federal Reserve raises interest rates

The US Federal Reserve has raised interest rates by 0.75 per cent for a third consecutive time – the fifth rate rise by the central bank this year as it attempts to cool inflation. There are growing concerns the rises are slowing the economy so aggressively that households and businesses will soon feel the pain, and the country could go into recession. Bank officials have defended the decision, stating recent indicators point to modest growth in spending and production. More rate rises have been pencilled in for the rest of the year – however, these will depend on the future state of the economy.