Fed Hikes Interest Rates for First Time Since 2023 in Inflation Fight

The U.S. Federal Reserve raised interest rates for the first time since 2023 in an effort to combat inflation, which remains above its 2% target.

In a unanimous decision, the policy-setting Federal Open Market Committee increased the benchmark interest rate by a quarter of a percentage point to a range of 3.75-4%, with expectations of further hikes in coming months.

Fed Chair Kevin Warsh emphasized the importance of addressing inflation and maintaining the central bank's commitment to its mandate, despite criticism from President Donald Trump, who has implored the Fed to cut borrowing costs.