The U.S. central bank ended an era of some of the lowest borrowing costs on record this Wednesday.

The Federal Reserve raised its benchmark interest rate by up to a quarter of a percent, the first rate hike in more than three years.

Initially, the Fed wanted to wean businesses and consumers off low borrowing costs during the COVID-19 pandemic’s early phase.

But now it’s firefighting some of the highest inflation in decades, with Russia’s attack on Ukraine blamed for sending gasoline prices soaring.

CGTN’s Owen Fairclough reports.

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