Fed Hikes Interest Rates Amid Rising Inflation Concerns

The Federal Reserve has raised interest rates for the first time since July 2023 in an effort to combat inflation, which has picked up due to the ongoing conflict with Iran.

The benchmark lending rate was increased by a quarter point to a range of 3.75-4%, undoing one of last year's three rate cuts.

Fed officials are concerned about inflation, which has been elevated for five years, and believe that the labor market is in a position to withstand tighter monetary policy.