Fed Hikes Rates as Inflation Remains High

The US Federal Reserve raised interest rates by 25 basis points to 3.75%-4.0%, marking its first hike since July 2023.

Fed Chair Kevin Warsh emphasized that 'inflation is too high and has been for too long,' and most policymakers expect another rate increase before year end.

Ahead of the decision, bond yields rose on inflation concerns while tech stocks suffered after AI leaders called for a slowdown in development.