Fed plots rate hikes that may disappoint many in market

The US Federal Reserve raised interest rates last night and said it was keeping the core of its plan to tighten monetary policy intact even as central bank officials said they would likely slow the pace of further rate increases next year.

After weeks of market volatility and calls by President Donald Trump to stop increasing borrowing costs, the Fed lifted rates by a quarter of a percentage point. Chairman Jerome Powell also said the central bank would continue drawing down the size of its balance sheet by $50bn (€44bn) each month.