The US Federal Reserve increased its target interest rate by 50 basis points today (December 14). It was the seventh consecutive rate hike in 2022 in an attempt to rein in multi-decade high inflation, but marked a possible new phase for monetary policy.

The Fed said it expects to continue to raise interest rates to bring inflation to 2% over the longer term. But the 50bp rate rise was smaller than recent 75bp moves, implying the US central bank may be nearing a turning point. Policy-makers