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Fed implements first half-point interest rate rise since 2000

US central bank says further increases of same size should be ‘on the table’ at next two meetings

The Federal Reserve raised its benchmark policy rate by half a percentage point for the first time since 2000 and sent a strong signal that it intends to increase it by the same amount at the next two meetings.

At the end of its two-day policy meeting on Wednesday, the Federal Open Market Committee lifted the target range of the federal funds rate to a range of 0.75 per cent to 1 per cent.

It was the first time since 2006 that the central bank has implemented rate increases at back-to-back meetings and comes as the US central bank embraces a more aggressive approach to tackling high inflation.

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