The US Federal Reserve’s latest economic projections will for the first time reflect the Ukraine war and its implications for growth and inflation, as the central bank hands down a historic interest rate rise to tame a 40-year high in consumer price growth.

The Fed’s decision is due at 5am on Thursday (AEDT), and it is certain to raise its funds rate by 25 basis points from the zero-to-0.25 per cent band. It will be the first Fed tightening since the coronavirus pandemic.