Fed announces sixth consecutive hike in US interest rates to fight inflation

Fed officials have now imposed the sharpest increases in interest rates since the 1980s, as the cost of living crisis batters consumers

The Federal Reserve has stepped up its fight against a 40-year high in US inflation, announcing its fourth consecutive three-quarter-percentage-point hike in interest rates but signaling the pace of increases may soon slow.

With the cost of living crisis battering consumers and Joe Biden's political fortunes, Fed officials have now imposed six rate rises in a row, the sharpest increases in interest rates since the 1980s, when inflation touched 14% and rates rose to nearly 20%.