US Fed Hikes Interest Rates Amid Persistent Inflation Concerns

The US Federal Reserve began its rate-setting meeting on Tuesday to tackle high inflation, with markets expecting policymakers to raise interest rates. The Fed's decision comes after data showed US annual inflation remaining well above the central bank's target.

Market expectations for a 25-basis-point rate hike have risen sharply since official data was published last week. This has led to oil prices jumping, US bond yields rallying, and equities retreating.

Susannah Streeter, chief investment strategist at Wealth Club, said 'there's no let-up in the volatility rippling through financial markets' due to elevated energy prices and concerns about inflation and interest rates.