The US central bank has imposed its fourth major interest rate rise in a row.
The Federal Reserve, the central bank known as the Fed, has once again hiked rates by 0.75 percentage points in an effort to curb soaring inflation.
The widely-expected rise will mean more expensive borrowing for the likes of mortgage holders and those paying credit card debt.
American interest rates now stand at3.75% to 4% up from 3% to 3.25% since the last increase in September.
The latest tough stance has been taken in an effort to limit spiralling inflation, which stood at more than 8.2%in the US in the 12 months up to September. The rises are being made as part of an overall plan to reduce inflation to 2%.
There is to be no let up in pursuing that target as the committee that decides US interest rates said it anticipated “ongoing increases” in rates will be appropriate “for some time”.
The Fed has taken on responsibility for inflation, speaking at the announcement, chair of the Fed, Jay Powell said price stability is the responsibility of his organisation and the bedrock of the economy. “Without price stability, the economy does not work for anyone,” he said.
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Just how high those rates reach remains to be seen. Mr Powell added there’s “significant uncertainty” around the level of rate rises but it’s expected rates will be higher than previously expected.
What will determine how much interest rates rise are readings on public health, labour market conditions, inflation, and financial and international developments.
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The longer the current high rate of inflation continues, the greater the chance that expectations of inflation will become entrenched, Mr Powell added.
Now is not the time to be considering when interest rises may moderate, he said, ongoing rate hikes are needed to get to a level that is “sufficiently restrictive”.
The impact of those rate rises are already having a negative effect on the economy, economists have said.
“A Fed-induced recession is still a very real – and dangerous – possibility,” said Rakeen Mabud, chief economist and managing director of policy and research at the Groundwork Collaborative.
“The slowdown in the housing market is the canary in the coal mine – a warning of the real price we will all pay if Chair Powell continues on his interest rate bender.”
If rates continue to rise a recession worse than that experienced after the global financial crisis could result, the United Nations Conference on Trade and Development (UNCTAD) had warned.
The rate had been 0% at the beginning of this year but the Fed has progressively increased the figure across five announcements. The low rate was reached during the pandemic when the Fed wanted borrowing to be cheap for businesses and consumers to remain financially afloat.
Not since the early 1980s has the Fed embarked on such an aggressive monetary-tightening campaign with Mr Powell on Wednesday describing the rises are increasing at a “historically fast pace”.
Prior to Wednesday’s increase, the Fed had already upped rates in September, June and July by what were, at the time, rises not seen since 1994.
The Fed is just one of many central banks targeting interest rates as inflationary pressures drive the cost of living crises across economies.
On Thursday, the Bank of Englandis anticipated to also raise its base rate of interest by 0.75% to 3%.
YouTuber-turned-boxer Jake Paul has defeated one of the greatest-ever fighters, former heavyweight world champion Mike Tyson, who is more than twice his age.
Paul, 27, won the bout via a unanimous points decision at the AT&T Stadium in Arlington, Texas – home of the Dallas Cowboys and the biggest NFL stadium in the US.
The fight was already controversial but then arguably failed to live up to the hype. Boos were heard from the crowd in the final two rounds, after a perceived lack of action.
Afterwards, the pair heaped praise on each other. Paul said: “This man is an icon and it’s just an honour to be able to fight him. And he’s obviously the toughest, baddest man on the planet.”
Tyson, 58, described Paul as a “good fighter” but dismissed the suggestion he was out to prove something.
“I didn’t prove nothing to anybody, only to myself,” he said.
Boxing careers compared
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This was not Paul’s first professional fight. The American YouTube star made his debut in 2020, and his most high-profile clash was last year against Tyson Fury’s brother Tommy Fury, which he lost by a split decision.
The so-called “Problem Child” has since defeated former UFC contender Nate Diaz, professional boxer Andre August, former Gold Gloves champion Ryan Bourland and most recently MMA fighter Mike Perry.
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In contrast, “Iron Mike” Tyson was ranked among the best heavyweight boxers of all time.
During his career, he knocked out 44 opponents – retiring from professional boxing in 2005 after defeat against Kevin McBride.
He returned to the ring in 2020 for a bout against fellow boxing icon Roy Jones, which ended in an unofficial draw.
‘Someone’s getting put to sleep’
Earlier this week, Paul said he believed the bout would not go the distance. “No, someone’s getting put to sleep,” he said. “It’s going to be a war, and we’re both heavy hitters. It’s not going the full 16 minutes.”
Tyson said: “I’ve been through so many ups and downs since my last fight with Kevin McBride.
“I’ve been in rehab. I’ve been in prison, been locked up. Never in a million years did I believe I’d be doing this.”
Several states would not allow the bout to go ahead, and the Texas Athletic Commission only agreed to the fight if there were changes, due to Tyson’s age.
It limited the contest to eight rounds lasting a maximum of two minutes instead of three. Both boxers were also required to wear heavier gloves, designed to lessen the force of punches.
The fight was initially scheduled for 20 July, but was postponed when Tyson suffered an ulcer flareup.
Taylor defends title
Meanwhile, among the undercard fights, Irish boxer Katie Taylor successfully defended her super lightweight world title against Puerto Rico’s Amanda Serrano.
But it was tight. Taylor claimed the rematch 95-94 for all three judges in an epic battle.
The bout came two and a half years after the pair fought at Madison Square Garden, which Taylor won on a split decision.
Bout suffered from buffering
Earlier in the evening thousands of Netflix users in the US reported problems with the coverage, with some posting on social media about buffering.
At one point, more than 98,000 people had reported issues according to Downdetector, which tracks outages.
US House Speaker Mike Johnson has said he will “strongly request” a report into allegations of sex trafficking against Matt Gaetz, who is the president-elect’s choice of attorney general, should not be released.
Mr Johnson said he was against publishing the House Ethics Committee report on Mr Gaetz, 42, who if approved by the Senate will become the nation’s top prosecutor once Donald Trump is sworn in as president on 20 January.
That’s despite Mr Gaetz having previously faced a nearly three-year Justice Department investigation into sex trafficking allegations involving a 17-year-old girl. He denies the allegations and has not faced criminal charges.
Mr Gaetz has also never worked as a prosecutor and has only worked in law for a few years at a local level.
He stepped down from Congress after Mr Trump announced him as his attorney general pick.
His resignation brought the investigation by the House Ethics Committee to an end – two days before it had been expected to release its report into the trafficking claims.
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Why is Matt Gaetz a controversial pick?
House Speaker Mr Johnson, a Louisiana Republican, said of the probe: “I’m going to strongly request that the Ethics Committee not issue the report, because that is not the way we do things in the House.”
Politicians of both parties on the Senate Judiciary Committee have said they want to see the report on Mr Gaetz, as part of a Senate confirmation process for cabinet nominees that would start next year with public hearings.
Democrats have described the MAGA loyalist as “a gonzo agent of chaos” and his appointment a “red alert moment for our democracy”, while some Republican senators have also raised doubts about his suitability for the role.
Mr Johnson said he planned to urge House Ethics Committee chairman Michael Guest not to provide the report to the Senate Judiciary Committee.
“The rules of the House have always been that a former member is beyond the jurisdiction of the Ethics Committee,” said Mr Johnson, who returned on Friday morning from meeting Mr Trump at the president-elect’s Mar-a-Lago resort in Florida.
“I think it’s a terrible breach of protocol and tradition and the spirit of the rule,” he added. “I think that would be a terrible precedent to set.”
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A $100m (£79m) lawsuit has been brought against the CIA, FBI and New York Police Department (NYPD) who are accused of being involved in the 1965 assassination of civil rights leader Malcolm X.
The case, which has been filed in a federal court in Manhattan, New York, alleges that the agencies were aware of the assassination, they were involved in the plot and failed to stop the killing.
The legal action has been brought by Malcolm X’s three daughters along with his estate.
The NYPD and CIA have not yet responded to the claims while the FBI said it was “standard practice” not to comment on litigation.
Nicholas Biase, a spokesperson for the US Department of Justice, which is also included in the lawsuit, declined to respond.
Malcolm X was 39 when he was shot dead on 21 February 1965 on stage by three gunmen as he prepared to speak at the Audubon Ballroom in Manhattan.
At a news conference in New York on Friday, to announce the details of the lawsuit, attorney Benjamin Crump said: “The government fingerprints are all over the assassination of Malcolm X.
“We believe we have the evidence to prove it.”
For decades, questions have arisen over who was behind his murder.
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Malcolm X rose to prominence as the national spokesman of the Nation of Islam, an African-American Muslim group which supported black separatism.
He broke away from the group in 1964 and moderated some of his earlier views on racial separation, which angered Nation of Islam members and resulted in death threats.
Three men were convicted of his murder but two of them were cleared in 2021 after investigators took a fresh look at the case. They concluded some evidence was shaky and authorities had held back some information.
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Malcolm X’s family speaking in February 2023 when the plans for the lawsuit were initially announced
In the lawsuit, which began its process in 2023, it is alleged the NYPD coordinated with federal law enforcement agencies to arrest the activist’s security guards days before the assassination.
It also claims police were intentionally removed from inside the ballroom where Malcolm X was killed and that federal agencies had personnel, including undercover agents, at the site but failed to protect him.
The lawsuit goes on to allege a “corrupt, unlawful, and unconstitutional” relationship between law enforcement and “ruthless killers… which was actively concealed, condoned, protected, and facilitated by government agents”.
Referring to Malcolm X’s family, the lawsuit states: “They did not know who murdered Malcolm X, why he was murdered, the level of NYPD, FBI and CIA orchestration, the identity of the governmental agents who conspired to ensure his demise, or who fraudulently covered up their role.”