Fed Raises Interest Rates as EU Proposes Canada Membership

The Federal Reserve announced yesterday that it will raise interest rates for the first time in over three years. The benchmark rate will increase by a quarter percentage point to a range of 3.75% to 4%. This hike makes borrowing money more expensive and may slow down economic growth.

Inflation has risen due to the ongoing war in Iran, which has driven up gas prices. Higher interest rates are intended to combat inflation, but they will not immediately lower prices.

The European Union proposed making Canada an 'associate member' earlier this week. This move is seen as a way for the EU and Canada to strengthen their ties despite pressure from President Trump's administration.