U.S. Fed lifts rates by 50 basis points

The U.S. Federal Reserve just delivered its well-telegraphed 50 basis points increase in interest rates – a day after the consumer prices were reported to have eased further to 7.1% in November.

That pushed the key rate up to 4.25% to 4.50 – a range that was last seen about 15 years ago.

S&P 500 pared back its intraday gain following the announcement particularly since the central bank is now projecting a terminal rate of 5.1% in 2023. The FOMC statement was almost unchanged from last month.

This is a developing story. Come back in a few minutes for more updates!

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