US Federal Reserve sees first rate rise in 2023; UK inflation rises over BoE target – as it happened

Rolling coverage of the latest economic and financial news

• Latest: US Federal Reserve leaves interest rates on hold
• 13 of 18 policymakers see first rise in 2023
• Powell: We'll taper, when goals are met

Earlier:

• UK inflation hit 2.1% in May, first time since summer 2019
• Transport, clothes and meals out pushed up inflation..as did games
• Hairdressing, books, carpets and bikes all pricier
• Factory gate prices jump

9.38pm BST

And finally...stocks finished lower in New York, as traders reacted to the news that a majority of Federal Reserve officials now expect US interest rates to rise in 2023.

But the main indices recovered from their lows, after Fed chair Powell said those dot plots weren't a great forecaster, and reiterated that the central bank believes inflationary pressures will be temporary.

Stocks finished with losses, but off session lows, after the Federal Reserve on Wednesday signaled that policy makers expect rates to rise earlier than previously expected by penciling in two increases by the end of 2023. https://t.co/6WurseMHrg pic.twitter.com/F9tCmQNnwa

US Dollar price action is broadly stronger as yields push higher post-Fed decision. Get your market update from @RichDvorakFX here:https://t.co/J9gLa1XPtx pic.twitter.com/aquWAe1koD

Pound sterling weakened against the US Dollar. Will support level of 1.40055 hold? #gbpusd #bearish https://t.co/GKcEHP34H8 pic.twitter.com/Qt32T0FoD7

9.18pm BST

Q: If you raise rates, you slow the economy, and the Fed has a history of sometimes going too far....

Jerome Powell says the Fed has to follow its dual mandate, of maximum employment and price stability. Often they pull in the same direction, he points out.

It turns out it's a heck of a lot easier to create demand than it is to bring supply back up to snuff. That's happening all over the world. There's no reason to think that will last indefinitely.