US Federal Reserve raises interest rates to 1% in bid to hold off inflation
by Phillip Inman and Sam Thielman from on (#2FZMS)
Fed chair says US economy in strong health as she announces third rate rise since 2008 and the first of several expected this year
The US Federal Reserve has sought to head off rising inflation with a third interest rate rise since the 2008 financial crash and the second in three months, taking the base rate from 0.75% to 1%.
The central bank set aside concerns about the impact of higher interest rates on consumer spending to confirm analyst projections that it is prepared to increase rates several times this year to keep a lid on inflation as it rises above its 2% target level.
Related: US interest rate rise signals end of ultra-low borrowing costs
Related: Q&A: What will happen if the Federal Reserve raises US interest rates?
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