US Federal Reserve announces biggest interest rate rise in nearly three decades

It follows an emergency meeting of the European Central Bank

A trader works on the floor of the New York Stock Exchange on Wednesday (Reuters)

America’s Federal Reserve announced the highest interest rate rise in nearly three decades on Wednesday, signalling further increases that could risk another recession.

The move comes as the United States tackles soaring inflation, and followed an emergency meeting by the European Central Bank (ECB) called in response to market turmoil.

The Fed said rates would rise 0.75 per cent — the biggest increase since 1994.