US central bank raises interest rates for first time in more than three years

Michael Race Business and economics reporter

US interest rates have been raised for the first time in more than three years and could be increased further in a bid to slow rising prices.

Rates were hiked to 3.75%-4% from 3.5%-3.75% by the Federal Reserve in a unanimous decision on Wednesday despite fierce opposition from President Donald Trump, who had called for rates to be cut.

Fed Chair Kevin Warsh said the move was because "inflation is too high and has been for too long", adding that it was a "sober" and "responsible decision".

However, Trump said rates "should be 1%, or less, because we are the Best Credit in the World - BY FAR".

Higher interest rates make borrowing more expensive for people wanting to secure loans, mortgages and credit cards, but can lead to better returns on savings.