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US Central Bank Raises Interest Rates to 5.5%

The US Federal Reserve has raised interest rates to 5.5%, the highest in 22 years, in its 11th increase since early 2022. The move is aimed at cooling the economy and easing price inflation. Fed chairman Jerome Powell stated that future rate changes will be decided on a meeting-by-meeting basis.

Inflation in the US was at 3% in June, down from over 9% the previous year. Some analysts believe the Fed has done enough to tackle inflation, while others caution against premature declarations of victory. The Bank of England is also expected to raise its key rate to 5% in response to 7.9% inflation.

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