Recession concerns as interest rates rise in US

Recession concerns as interest rates rise in US

The US Federal Reserve raised interest rates by 0.75 per cent overnight in an attempt to control skyrocketing inflation.

Sky News Business Reporter Edward Boyd says the recession has a lot to do with inflation which is at near 40 year highs.

US Federal Reserve Chair Jerome Powell said for the longer term the US needs the “supply and demand to get better aligned”.

“So that housing prices go up at a reasonable level at a reasonable pace, and that people can afford houses again," Mr Powell said.

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