The U.S. Federal Reserve (FED) raised interest rates by 0.25 percentage points on Wednesday. The hike puts it in the range of 5-5.25%, the highest in 16 years.

This is the tenth consecutive hike the agency has made since March 2022 in response to the need to combat a post-pandemic inflationary trend. However, it has indicated that it could pause its aggressive policy to evaluate the scenario and decide how to continue. That decision has consequences for countries across the world, including Argentina and local financial assets, because it affects the cost of money and the direction of capital flows.