Fed Hikes Interest Rate Amid Persistent Inflation Concerns

The US Federal Reserve has raised its key interest rate by a quarter of a percentage point to a target range of 3.75%-4.00%, marking its first increase in three years.

This move is aimed at controlling stubbornly high inflation, which has been a persistent concern for the Fed.

The rate hike could lead to higher borrowing costs for mortgages, auto loans, and credit cards.

Futures for major US stock indices have rebounded after the Fed's announcement, with the S&P 500 futures rising 0.8%, Dow Jones Industrial Average futures gaining 0.7%, and Nasdaq futures climbing 1.1%.