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, which is expected to impact other markets and the global economies and currencies.

Federal Reserve Bank of New York

"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."

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 by Fed will follow next year.

Impact on sensex

Indian shares fell on Thursday with the rupee hitting a record low after the US Federal Reserve raised interest rates and indicated more hikes than markets had expected.

The NSE Nifty 50 index fell 0.53% at 17,624, while the S&P BSE Sensex slipped 0.51% to 59,150.

The Indian rupee hit a record low of 80.45 against the U.S. dollar.