US Federal Reserve says rate rise 'appropriate' soon

The US central bank is poised to raise interest rates as it unwinds the support it has provided the world's largest economy since the start of the pandemic.

The Federal Reserve did not raise interest rates on Wednesday, but said such a move "will soon be appropriate".

The bank is under pressure to rein in inflation as prices in the US rise at the fastest rate in almost 40 years.

Analysts expect a rate hike in March, which would be the first since 2018.

Higher borrowing costs help combat price rises by reducing demand for items such as cars and homes - key drivers of some of the inflation in the US.

But the Fed risks chilling economic activity too fast. Investors in the stock market are also worried about how share prices will respond to the Fed's moves, as other higher interest rates make other investments more attractive.

Jittery markets in the US have seen three consecutive weeks of declines.