Fed slows its interest rate hikes with smaller half-point raise

The Federal Reserve has slowed the pace of its interest rate hikes in its latest decision on Wednesday, issuing a smaller increase in its final decision of the year. 

The US central bank raised its benchmark rate by half a percentage point, still double the usual move but not as huge as the last four hikes it has made, which were all three-quarters of a percentage point.

The move takes the Fed’s overnight lending rate to a range of 4 percent to 4.5 percent, the highest in 15 years.  

Other central banks around the world, including the European Central Bank, are also likely to raise their own rates by half a percentage point this week.

Fed Chair Jerome Powell. The Federal Reserve has slowed the pace of its interest rate hikes in its latest decision on Wednesday

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On Tuesday, the U.S. government reported that inflation slowed more than economists expected in November. 

It is another sign that inflation is easing and has given Wall Street hope that the Fed might be able to take its foot off the brakes on the economy sooner than expected and possibly avoid a recession.

Developing story, more to follow.