US Federal Reserve hikes interest rates 0.75% to curb inflation NEWS UPDATE

The US Federal Reserve has raised interest rates by 0.75% - the most aggressive hike since 1994 - in an effort to curb soaring inflation. America's central bank is trying to tighten monetary policy, while fostering growth in the economy and labour markets. But will the move be effective? Christian Lawrence, Senior Markets Strategist at Rabobank New York, says the Fed is 'in a bad situation,' because it cannot control the primary drivers of inflation - food and energy costs.