Fed eases pace of interest rate rises after signs inflation may be slowing

The US is facing a cost of living crisis with soaring inflation, with the latest interest rate hike the seventh increase this year

The Federal Reserve lightly tapped the brakes on its high-speed interest rate rises on Wednesday following news that suggested two years of runaway inflation may be slowing down in the US.

After a two-day meeting the Fed announced another half-point increase in interest rates, its seventh increase of the year but one that follows four straight three-quarter-point interest rate hikes. The increase brings the Fed's benchmark interest rate - used for everything from setting mortgage rates and loans to credit cards - to a range of 4.25% to 4.5%, its highest level in 15 years.