The world’s largest economy is bracing for recession after the US Federal Reserve raised interest rates for a tenth – but possibly final – time this afternoon.

Pressing ahead with its mission to curb the beast of inflation, the Fed implemented another 25-basis point hike, lifting rates to a 16-year high of between 5% and 5.25%.

The decision comes as price growth remains stubbornly above its long-term target of 2% in the US. Headline annual consumer inflation did fall to 5% in the March – 1 percentage point lower than in February and a significant slowdown since June’s peak of 9.1%.