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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 at 3.75% 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.

The longer the current high rate of inflation continues, the greater the chance that expectations of inflation will become entrenched, Mr Powell added.

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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.

US economy bounces back from recession territory even as storm continues to brew

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 England is anticipated to also raise its base rate of interest by 0.75% to 3%.

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Donald Trump threatens to revoke Rosie O’Donnell’s US citizenship

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Donald Trump threatens to revoke Rosie O'Donnell's US citizenship

Donald Trump has said he is considering “taking away” the US citizenship of actress and comedian Rosie O’Donnell, despite a Supreme Court ruling that expressly prohibits a government from doing so.

In a post on Truth Social on Saturday, the US president said: “Because of the fact that Rosie O’Donnell is not in the best interests of our Great Country, I am giving serious consideration to taking away her Citizenship.”

He also labelled O’Donnell, who has moved to Ireland, as a “threat to humanity” and said she should “remain in the wonderful country of Ireland, if they want her”.

O’Donnell responded on Instagram by posting a photograph of Mr Trump with Jeffrey Epstein.

“You are everything that is wrong with America and I’m everything you hate about what’s still right with it,” she wrote in the caption.

“I’m not yours to silence. I never was.”

Rosie O'Donnell arrives at the ELLE Women in Hollywood celebration on Tuesday, Nov. 19, 2024, in Los Angeles. (Photo by Jordan Strauss/Invision/AP)
Image:
Rosie O’Donnell moved to Ireland after Donald Trump secured a second term. Pic: AP

O’Donnell moved to Ireland with her 12-year-old son in January after Mr Trump had secured a second term.

She has said she’s in the process of obtaining Irish citizenship based on family lineage and that she would only return to the US “when it is safe for all citizens to have equal rights there in America”.

O’Donnell and the US president have criticised each other publicly for years, in an often-bitter back-and-forth that predates Mr Trump’s move into politics.

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Will Trump address parliament on UK state visit?

This is just the latest threat by the president to revoke the citizenship of someone he has disagreed with, most recently his former ally Elon Musk.

But the two situations are different as while Musk was born in South Africa, O’Donnell was born in the US and has a constitutional right to American citizenship.

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Amanda Frost, a law professor at the University of Virginia School of Law, said the Supreme Court ruled in a 1967 case that the fourteenth amendment of the constitution prevents the government from taking away citizenship.

“The president has no authority to take away the citizenship of a native-born US citizen,” he added.

“In short, we are nation founded on the principle that the people choose the government; the government cannot choose the people.”

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Farmer becomes first person to die during Trump’s ICE raids

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Farmer becomes first person to die during Trump's ICE raids

A farmer who fell from a greenhouse roof during an anti-immigrant raid at a licensed cannabis facility in California this week has died of his injuries.

Jaime Alanis, 57, is the first person to die as a result of Donald Trump’s Immigration Compliance and Enforcement (ICE) raids.

His niece, Yesenia Duran, posted on the fundraising site GoFundMe to say her uncle was his family’s only provider and he had been sending his earnings back to his wife and daughter in Mexico.

The United Food Workers said Mr Alanis had worked on the farm for 10 years.

“These violent and cruel federal actions terrorise American communities, disrupt the American food supply chain, threaten lives and separate families,” the union said in a recent statement on X.

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Who is being targeted in Trump’s immigration raids?

The Department of Homeland Security (DHS) said it executed criminal search warrants at Glass House Farms facilities on Thursday.

Mr Alanis called family to say he was hiding and possibly fleeing agents before he fell around 30ft (9m) from the roof and broke his neck, according to information from family, hospital and government sources.

Agents arrested 200 people suspected of being in the country illegally and identified at least 10 immigrant children on the sites, the DHS said in a statement.

Mr Alanis was not among them, the agency said.

“This man was not in and has not been in CBP (Customs and Border Protection) or ICE custody,” DHS assistant secretary for public affairs Tricia McLaughlin said.

“Although he was not being pursued by law enforcement, this individual climbed up to the roof of a greenhouse and fell 30ft. CBP immediately called a medivac to the scene to get him care as quickly as possible.”

Read more:
Trump announces 30% tariff on imports from EU
President threatens to revoke US comedian’s citizenship

Four US citizens were arrested during the incident for allegedly “assaulting or resisting officers”, the DHS said, and authorities were offering a $50,000 reward for information leading to the arrest of a person suspected of firing a gun at federal agents.

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In a statement, Glass House, a licensed Cannabis grower, said immigration agents had valid warrants. It said workers were detained and it is helping provide them with legal representation.

“Glass House has never knowingly violated applicable hiring practices and does not and has never employed minors,” it added.

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Donald Trump threatens to revoke Rosie O’Donnell’s US citizenship

Published

on

By

Donald Trump threatens to revoke Rosie O'Donnell's US citizenship

Donald Trump has said he is considering “taking away” the US citizenship of actress and comedian Rosie O’Donnell, despite a Supreme Court ruling that expressly prohibits a government from doing so.

In a post on Truth Social on Saturday, the US president said: “Because of the fact that Rosie O’Donnell is not in the best interests of our Great Country, I am giving serious consideration to taking away her Citizenship.”

He also labelled O’Donnell, who has moved to Ireland, as a “threat to humanity” and said she should “remain in the wonderful country of Ireland, if they want her”.

O’Donnell responded on Instagram by posting a photograph of Mr Trump with Jeffrey Epstein.

“You are everything that is wrong with America and I’m everything you hate about what’s still right with it,” she wrote in the caption.

“I’m not yours to silence. I never was.”

Rosie O'Donnell arrives at the ELLE Women in Hollywood celebration on Tuesday, Nov. 19, 2024, in Los Angeles. (Photo by Jordan Strauss/Invision/AP)
Image:
Rosie O’Donnell moved to Ireland after Donald Trump secured a second term. Pic: AP

O’Donnell moved to Ireland with her 12-year-old son in January after Mr Trump had secured a second term.

She has said she’s in the process of obtaining Irish citizenship based on family lineage and that she would only return to the US “when it is safe for all citizens to have equal rights there in America”.

O’Donnell and the US president have criticised each other publicly for years, in an often-bitter back-and-forth that predates Mr Trump’s move into politics.

Please use Chrome browser for a more accessible video player

Will Trump address parliament on UK state visit?

This is just the latest threat by the president to revoke the citizenship of someone he has disagreed with, most recently his former ally Elon Musk.

But the two situations are different as while Musk was born in South Africa, O’Donnell was born in the US and has a constitutional right to American citizenship.

Read more from Sky News:
Kate’s ’emotional’ words for tearful tennis star
Music festival cancelled as headliner pulls out

Amanda Frost, a law professor at the University of Virginia School of Law, said the Supreme Court ruled in a 1967 case that the fourteenth amendment of the constitution prevents the government from taking away citizenship.

“The president has no authority to take away the citizenship of a native-born US citizen,” he added.

“In short, we are nation founded on the principle that the people choose the government; the government cannot choose the people.”

Continue Reading

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