US Central Bank Raises Interest Rates

The United States Federal Reserve has increased interest rates for the first time in three years. The central bank raised rates in an effort to bring down rising inflation. Donald Trump has called for a cut to rates instead. The rate hike caused a sharp reaction in financial markets after officials signaled a major change. Local markets have also felt the impact, with the ASX 200 expected to fall following the announcement. The S&P 500 has dropped for a third straight session. Homeowners are facing new pressure as borrowing costs head higher.