US FED raise interest rates by 0.5% in May

The US Federal Reserve (The FED) last night raised interest rates in the US by a full half a percentage point which hasn’t happened for over 20 years. The FED announced they would look to raise rates by another half a percentage point at the next two meetings in June and July to combat rising inflation. The market rallied into this news as the FED also said they were, at this moment in time, not considering a 0.75% hike which the market had begun to price in over the last month. All eyes remain on the probability of aggressive rate rises causing a recession in the coming year which very much remain on the cards.