The US federal reserve surprised analysts with a larger than expected 50 basis point rate hike as 11 governors voted for the proposal and one against. The decision leaves Interest rates in a range of 4.75% to 5%.
Governor Michelle Brown dissented preferring the 0.25% rate cuts which most analysts had foreseen. This was the first dissident vote since 2005.
The committee of governors argued that inflation was on a downward course to the 2% goal set by the organization and that employment consideration warranted a stronger rate cut.
After the announcement the main Wall Street indexes reached historical highs before ending Wednesday in negative territory.
By Staff
