Fed Raises Interest Rates Amid Ongoing Inflation Concerns

The Federal Reserve has increased borrowing costs by raising its benchmark interest rate to 3.75% to 4.00%, marking its first increase since summer 2023.

This move is expected to make loans for homes, vehicles, and other major purchases more expensive, while people with savings may see slightly higher returns.

The European Central Bank has also hiked rates across the Atlantic to help combat inflation, which remains a worldwide problem. A recent report showed that shoppers spent significantly more at U.S. retailers last month than economists expected, potentially indicating that the economy is strong enough to withstand higher rates.