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Market updates live: US Fed raises interest rates to curb inflation and another hike is on the cards

The US Federal Reserve's Federal Open Market Committee voted unanimously to lift interest rates by 25 basis points, with policymakers expecting one more hike before the end of the year.

US share markets were down overnight on the news while locally the share market is also expected to drop.

Look back at the day's financial news and insights from our specialist business reporters as it happened on our blog.

Disclaimer: this blog is not intended as investment advice.

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Live updates

Market Snapshot

- Alison Branley

- ASX 200: +0.28% to 8,696 points (close)

- Australian dollar: +0.01% at 70.87 US cents

- Wall Street: Dow Jones (-1.21%), S&P 500 (-0.45%), Nasdaq Composite (-0.012%)

- Europe: DAX (+0.53%%), FTSE (+0.28%)

- Asia: KOSPI (+1.37%), Nikkei (-0.69%), Hang Seng (+.19%)

- Spot gold: -0.71% to $US4,262/ounce

- Oil (Brent): -2.88% to $US105.62/barrel

- Iron ore: +0.32% at $US97/tonne

- Bitcoin: -0.11% to $US76,047

Prices current at around 7:30am AEST

US: inflation still too high for too long

So what do the pundits make of the US Federal Reserve's decision.

NAB Head of FX Strategy Markets Ray Attrill

"Warsh press conference largely repeats sentiments expressed at Jackson Hole, inflation too high for too long, financial conditions not restrictive, comes across as hawkish."

So what did US Federal Reserve chair Kevin Warsh actually say? Here are some of the words from the statement:

"The Committee decided to raise the target range for the federal funds rate by 1/4 percentage pointto 3-3/4to 4 percent, in support of the Federal Reserve's dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.

"Economic activity is expanding at a solid pace. While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient. Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little.

"Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2 percent goal. The Committee will deliver price stability."

Morning

Morning all,

Lots of action to watch on the blog today with the US Federal Reserve decision to raise interest rates by 25 basis points.

US markets fell overnight and the Aussie share market is also tipped to open lower.

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