Fed Hikes Rates for First Time Since 2023 Amid Inflation Concerns

The Bank of England is facing pressure to raise interest rates after the US Federal Reserve announced its first rate hike since 2023.

The Fed's decision was unanimous, with all 12 policymakers voting in favor of a rise, taking the federal funds target range from 3.5-3.75% to 3.75-4%.

This move is seen as a surprise, given that new Fed Chief, who took office in late May, was expected to cut rates. However, with inflation remaining elevated at 3.7%, policymakers believe the rate hike will support a timely return to the committee's 2% goal.

The decision has significant implications for the US economy, particularly with midterm elections just around the corner. The Republicans are facing an uphill battle, and rising interest rates on home mortgages have been a major concern for voters.