Fed Raises Benchmark Interest Rate Amid Persistent Inflation

The Federal Reserve has made a decision to raise its benchmark interest rate by 25 basis points. This increase brings the interest rate range to 3.75%, 4%, marking the first rate hike since July 2023.

The move comes as US inflation remains above the Fed's target of 2%. The President, Donald Trump, had urged the Fed to lower rates, but the decision went against this request.

Certain financial institutions, including JPMorgan, KeyCorp and BNY, have also raised their prime rates. This may lead to increased borrowing costs for Americans.