Fed Hikes Interest Rates for First Time Since 2023

The Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, marking its first increase since 2023. The decision was made to support a 'timelier return' of inflation to the Fed's 2% target.

The move brought the target range to 3.75%-4.00%, with policymakers continuing their efforts to control inflation. Sixteen out of 18 members project at least one additional rate increase this year, while four predict two more increases.

The Fed's median FOMC projection calls for a further increase in the target range to 4.00%-4.25% by the end of the year.