Fed Hikes Rates Amid Rising Oil Prices and AI Spending

The Federal Reserve has raised its benchmark interest rate for the first time in over three years. The unanimous vote to increase rates by a quarter-point, to about 3.9%, is aimed at combating inflation caused by rising oil prices and other factors, including AI spending and tariffs.

According to CNBC, the 'vast majority' of Fed policymakers also penciled in one more hike this year, which implicitly undercuts the White House's insistence that inflation isn't a concern. This move has drawn ire from President Donald Trump.