Fed continues to shrink rate rises with 25 basis points move

Lower than expected

The Federal Reserve has raised interest rates by 25 basis points, its second consecutive reduction in the size of rate rises, a “dovish” move according to experts.

This puts interest rates at 4.65%, the highest level since September 2007. Markets reacted positively to the news though, with the S&P 500 climbing just over 1% after the rates rise was announced and have stayed up, according to Refinitiv data. The vote was unanimous from the Fed board, which also signalled that there could be further interest rate increases to come in order to bring inflation back under control. Yellen predicts US inflation will be lower next year However, markets are reading the news differently, as Ronald Temple, chief market strategist at Lazard, said only o...