Fed Raises Interest Rates to Combat Elevated Inflation

The US Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, marking its first hike in over three years.

This decision was made to support the central bank's dual mandate of maximum employment and price stability.

The Federal Open Market Committee (FOMC) increased the target range for the federal funds rate to 3.75%-4%.

Inflation remained elevated, with US consumer inflation standing at 3.4%, unchanged from July, while core inflation eased to 2.4% annually from 2.5%.