Washington | The Federal Reserve kicked off a tightening campaign that is set to be the most aggressive in decades, as chairman Jerome Powell assured Americans the economy would not tip into recession.

After raising interest rates by a quarter of a percentage point and signalling six more increases this year, Mr Powell told reporters that inflation was too high, the labour market was over-heated and price stability was a “pre-condition” for the US central bank as it tackles the hottest price pressures in 40 years.