Fed Raises Rates for First Time in Three Years Amid Ongoing Inflation Pressures

The U.S. Federal Reserve raised interest rates for the first time in three years on Wednesday, aiming to combat stubbornly high inflation.

The quarter-point increase boosts the Fed's key rate to about 3.9 per cent, and could lead to higher borrowing costs for American mortgages, auto loans, and credit cards.

The move comes as Americans are struggling with high costs for groceries, gas, and housing, making affordability a major issue in the upcoming midterm elections.