Fed Hikes Interest Rates, Shortest Interval Since 1990

The Federal Reserve raised interest rates for the first time since July 2023, increasing the benchmark federal funds rate to a range of 3.75% to 4%. This move marks the shortest interval between such increases since 1990.

Fed officials also signaled growing support for additional rate hikes before the end of the year, with Chairman Kevin Warsh reiterating concerns about inflation.

The Bank of Japan raised its policy rate by a quarter point to 1.25%, but disappointed yen traders who sought clearer guidance on the central bank's next move.