Interest rates soar to highest level since 2001, sparking misery for credit card holders and homebuyers – here’s how latest Fed rate hike could hit YOUR pocket

The Federal Reserve has raised interest rates by a quarter percentage point, taking benchmark borrowing costs to the highest level in more than two decades. 

In a much-anticipated move, the central bank made the unanimous decision to raise rates to between 5.25 and 5.5 percent – the highest since early 2001. 

It comes after the Fed pressed pause on interest rate rises for the first time in 15 months in June, to allow time to assess the impact of its aggressive drive to dampen inflation. 

The central bank’s 18 policymakers held rates steady following ten consecutive hikes since March 2022, which saw mortgages and borrowing costs soar.

Following today’s announcement the Fed made minimal changes to its postmeeting statement, offering no new guidance about its future policy plans as households braced for further price increases.

This is a breaking news story. More to follow.