Fed Raises Interest Rates as Inflation Concerns Persist

The Federal Reserve is expected to raise the target range for the federal funds rate by 25 basis points to 3.75%-4.00% this afternoon, marking its first rate hike since 2023.

Inflation remains a concern, with U.S. headline inflation holding at 3.4% year-on-year in August and core inflation at 2.4%. Diesel prices have risen to $6 a gallon, adding pressure to the outlook as an end to the US-Iran conflict appears increasingly distant.

Nymex crude oil futures fell to around $104 a barrel today, retreating after two consecutive sessions of gains due to signs of rising U.S. inventories weighing on the market.