US Federal Reserve makes first 0.5% interest rate hike since 2000

Yesterday evening, the Federal Open Market Committee implemented its first back-to-back hike since 2006 as it expressed a more aggressive approach to tackling inflation, which hit 8.5% in the US in March, the highest level since 1981. Powell also outlined plans to reduce the Fed's balance sheet, beginning with a runoff of $30bn and $17.5bn in Treasuries and mortgage-backed securities respectively in June, then rising to a combined monthly reduction of $95bn by September. Richard Flynn, UK managing director at Charles Schwab, said he expected investors were "unsurprised" by the rate hi...