Fed hikes rates again and warns of more rises

The US central bank has hiked interest rates again and warned more rises will be necessary tor rein in the rapid pace of price increase.

Forecasts from the Federal Reserve showed the bank’s key interest rate could stand above 5% a year from now.

But policymakers are starting to move more cautiously following signs that the most severe inflation in decades may be starting to ease. They agreed to lift the bank’s key interest rate by 0.5 percentage points

That pushed the larger range for the Fed’s benchmark rate to 4.25%-4.5% the highest rate in 15 years. But it was a smaller increase than in recent announcements.