Federal Reserve raises interest rates for first time since 2018

The US Federal Reserve is raising interest rates for the first time since 2018 in an attempt to bring fast-rising prices under control.

The US central bank said it was lifting its target rate by a quarter point to at least 0.25% and signalled plans for further rate rises in the months head.

The moves come as the economy faces new uncertainty caused by coronavirus outbreaks in China and Ukraine war.

They are expected to have widespread global repercussions.

By raising rates, the Fed will make it more expensive for households, businesses and governments around the world, to borrow.

It is hoping that will cool demand for goods and services, helping to ease price inflation in the US, which hit a new 40-year high of 7.9% last month.