Wall Street has rallied and the Australian dollar has soared above 70 U.S. cents after America’s federal reserve agreed to increase interest rates by a 0.75 percentage point

Investors showed signs of relief, with the Dow Jones jumping 1 per cent, the S&P 500 rising by 1.5 per cent and the Nasdaq by 2.5 per cent.

As the world reacts, the Australian market is expected to gain today, with ASX futures up 0.24 per cent at 6:30AM AEST.

This follows the market falling for its fourth day in a row on Wednesday, with the ASX 200 down 1.3 per cent as investors waited anxiously for the Fed announcement.

But is the Fed’s latest move going to combat the inflation every single American is feeling right now?

Market analyst Octavio Marenzi says Jerome Powell must take responsibility for where inflation in the US is at.

The Fed has increased rates to fight inflation but if they go too high they risk triggering a recession.