Fed Delivers First Interest Rate Hike Since 2023 Amid Uncertainty Over Future Increases

The Federal Reserve has delivered its first interest rate hike since 2023, raising rates by a quarter percentage point to 3.75-4.00 percent on September 16.

This decision was met with confidence in the Fed's approach to inflation, but also left investors uncertain about how much further rates could rise.

Investors had been reassessing their outlook for U.S. interest rates after persistent above-target inflation, and some said higher rates could make rate-sensitive assets less attractive.

The unanimous decision was seen as a test of independence for new Fed Chair Kevin Warsh, who has been viewed as hawkish in his approach to inflation.