The Bank of England is under pressure to raise interest rates after the US central bank has hiked interest rates for the first time since 2023.
The decision was was unanimous among Fed policymakers to raise rates, with all 12 voting in favour of a rise.
The Fed has increased its rate from 3.5 per cent-3.75 per cent to 3.75 per cent-four per cent.
It is the first policy shift under the new Fed chief, who took office in late May after being selected by President Trump with an expectation that he would cut rates.
The rate increase was announced less than two months ahead of midterm elections that will determine whether President Trump's Republicans maintain control of Congress for the final two years of his presidency.
The Republicans are facing an uphill battle with voters angry about gasoline prices that are about a third higher than a year ago and interest rates on home mortgages that have been rising steadily this year.
The average rate on a 30-year fixed-rate mortgage is approaching seven per cent.
Policymakers' new quarterly economic projections marked up estimates of inflation, as measured by the Personal Consumption Expenditures Price Index, to 3.7 per cent versus the 3.6 per cent projected at the Fed's June meeting.
Inflation is not projected to return to the two per cent target until 2029, a year later than previously expected.
Economic growth was marked up slightly from 2.2 per cent to 2.3 per cent, while the unemployment rate is seen ending the year at 4.1 per cent, versus the 4.3 per cent projected in June.
More to follow...
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The Bank of England is under pressure to raise interest rates after the US central bank has hiked interest rates for the first time since 2023.
The decision was was unanimous among Fed policymakers to raise rates, with all 12 voting in favour of a rise.
The Fed has increased its rate from 3.5 per cent-3.75 per cent to 3.75 per cent-four per cent.
It is the first policy shift under the new Fed chief, who took office in late May after being selected by President Trump with an expectation that he would cut rates.
The rate increase was announced less than two months ahead of midterm elections that will determine whether President Trump's Republicans maintain control of Congress for the final two years of his presidency.
The Republicans are facing an uphill battle with voters angry about gasoline prices that are about a third higher than a year ago and interest rates on home mortgages that have been rising steadily this year.
The average rate on a 30-year fixed-rate mortgage is approaching seven per cent.
Policymakers' new quarterly economic projections marked up estimates of inflation, as measured by the Personal Consumption Expenditures Price Index, to 3.7 per cent versus the 3.6 per cent projected at the Fed's June meeting.
Inflation is not projected to return to the two per cent target until 2029, a year later than previously expected.
Economic growth was marked up slightly from 2.2 per cent to 2.3 per cent, while the unemployment rate is seen ending the year at 4.1 per cent, versus the 4.3 per cent projected in June.
More to follow...
Our Standards: The GB News Editorial Charter
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