US Fed delivers another big interest rate hike

The US Federal Reserve announced another interest rate hike to fight inflation amidst growing concerns that the central bank could end up slowing down the economy.

The 0.75 hike was the fourth in 2022.

"We have got to get inflation behind us. I wish there were a painless way to do that," Fed Reserve Chairman Jerome Powell said. "There isn't".

He added: "We want to act aggressively now, and get this job done, and keep at it until its done."

Powell has made it clear officials will continue to act aggressively to cool the economy and avoid a repeat of the 1970s and early 1980s, the last time US inflation got out of control.

It took tough action -- and a recession -- to finally bring prices down in the 1980s, and the Fed is unwilling to give up its hard-won, inflation-fighting credibility.

A further increases are expected later in the year, of three-fourth, which would take the benchmark rate to 4.4 per cent, including a three-fourth hike in November and by a half point in December.

More rate hikes will follow next year.