The Federal Reserve yesterday defied pressure from Donald Trump and equity investors by boosting rates for the fourth time this year even as it flagged risks from stormy markets and slower overseas growth.
The US central bank lifted the target range for the federal funds rate by another quarter point to 2.25-2.5 per cent, in a unanimous decision. But it also pared back its forecasts for further increases and indicated that it is less certain about future moves.
Despite signalling that it would raise rates more slowly next year, US stocks fell sharply in the immediate aftermath of the decision as investors had priced in an even more dovish stance.