US Fed makes biggest interest rate hike in 22 years: Top economics stories to read this week

China's services activity fell to its lowest level in over two years last month as COVID-19 outbreaks and lockdowns hit consumer spending. The services sector produces intangible goods rather than material goods, and includes industries such as warehousing, transportation, information providers and entertainment.

New analysis from Barclays suggests that US households could face a 30-40% increase in monthly energy bills if high natural gas prices persist.

The Hong Kong Monetary Authority has increased its benchmark interest rate by 50 basis points – to 1.25% from 0.75% – following the US Federal Reserve's rate increase.

Poland and the Czech Republic are both also expected to raise their interest rates on 5 May.

And as Mexico faces inflation that is running at a 20-year high, the government has struck a deal with leading companies to temporarily cap the price of 24 food and other basic products.

The world's largest cryptocurrency exchange by trading volume, Binance, has received regulatory approval from the French government. It marks the exchange’s first major approval from a G7 nation and appears to show that the world’s largest crypto firms are gaining momentum with regulatory bodies in certain strategic markets.

Switzerland's Federal Council has appointed Martin Schlegel as vice-chairman of the governing board of the Swiss National Bank, succeeding Fritz Zurbrügg as head of the department responsible for financial stability.

The US Federal Reserve has raised its benchmark overnight interest rate by half a percentage point – the biggest jump since 2000.

In a widely expected move, the Fed set its target federal funds rate to a range of between 0.75% and 1% in a unanimous decision. Fed Chair Jerome Powell said policymakers are also ready to approve half-percentage-point rate hikes at policy meetings in June and July.

This level of detail – effectively announcing rate hikes in advance – is unusual, but it reflects Powell's attempts to steer a course between high inflation that requires a strong Fed response and the sort of overly strong moves that might tip the economy into recession.

But he also made clear that the rate increases the Fed has in mind are "not going to be pleasant" as they will force Americans to pay more for home mortgages and car loans, and will possibly reduce asset values.

Turkey already has the fastest inflation rate among the G20 economies, and a Bloomberg survey of economists has now found that Turkish consumer prices likely rose by 67.8% in April compared with a year earlier.

The country's central bank has previously indicated that it won't raise interest rates in response.

“Inflation won’t trigger a rate hike by the central bank,” investment bank Tera Yatirim's Chief Economist Enver Erkan said last week. “The government is supportive of a low-rate policy to boost growth and doesn’t believe higher rates would slow inflation.”

What is the impact of affordable housing on nearby property values? New research asks the question.

Is global inequality set to "boomerang"? New research in VoxEU suggests it will.

International Monetary Fund (IMF) research shows the likely impact of the war in Ukraine on Sub-Saharan Africa.

Inflation is set to remain elevated for longer than previously forecast, according to the IMF's latest World Economic Outlook.