Fed Raises Interest Rates for First Time in Over Three Years, Gold Prices Slide

The Federal Reserve raised interest rates for the first time in over three years on September 16, sending shockwaves through global financial markets.

The Fed's decision to raise the federal funds rate by 0.25 percentage points to a target range of 3.75%, 4% was widely expected and marked a significant shift in monetary policy.

Fed Chair Kevin Warsh emphasized that price trends have shown no improvement, while the economy has strengthened considerably since the last policy meeting.

The move was seen as hawkish by investors, leading to a surge in the US dollar index to around 100.25 and putting pressure on gold prices, which fell $30 an ounce to settle at $4,263 an ounce.