The US Federal Reserve has raised its benchmark interest rate by half a percentage point. That's the biggest increase in more than two decades, as the American central bank tries to tame historic consumer price increases in the world's largest economy. That's not all. The Fed says it's also shrinking its balance sheet starting next month. It's selling government debt and mortgage-backed securities that it bought up during the pandemic.

We spoke with David Madden, market analyst at Equiti Capital in London. He says US Federal Reserve is avoiding an overly hawkish stance to ensure a soft landing.

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