Federal Reserve announces biggest interest rate hike since 2000

Benchmark interest rate raised 0.5 percentage points, with more rises expected

The Federal Reserve moved to tamp down soaring inflation in the US on Wednesday, announcing the sharpest rise in interest rates in over 20 years.

The Fed's benchmark interest rate was raised by 0.5 percentage points to a target rate range of between 0.75% and 1%. The hike is the largest since 2000 and follows a 0.25 percentage point increase in March, the first increase since December 2018.