Federal Reserve Hikes Interest Rates Amid Soaring Fuel Prices

The Federal Reserve has raised interest rates for the first time since 2023 in an effort to combat rising inflation.

The rate hike, which brings the federal funds rate to between 3.75% and 4%, is a reversal of the Fed's stance earlier this year when it was expected to lower interest rates throughout 2026.

The move comes as the global energy crisis continues to drive up fuel prices in the U.S., with the average price of diesel reaching a record $6.31 per gallon on Wednesday, a 71% jump from a year ago.

The Fed's decision was unanimous, and its members expect to raise rates again later this year, according to quarterly projections released along with the rate hike.