Fed Hikes Interest Rates Again Amid Stubborn Inflation Concerns

The US Federal Reserve has raised interest rates for the first time since 2023, hiking its benchmark rate by 25 basis points to between 3.75 and 4 per cent.

The move marks a sharp turnaround from expectations earlier this year when economists and markets expected the Fed to hold rates steady.

Fed policymakers now believe more tightening may be needed, despite US President Donald Trump's repeated calls for rate cuts.