Federal Reserve Hikes Key Rate Amid Strong US Economy

The Federal Reserve raised its key interest rate for the first time in three years, defying calls from former President Donald Trump to lower rates. The Fed's decision was made during a meeting of its Federal Open Market Committee (FOMC) on Wednesday.

The rate hike is seen as a signal that the US economy is growing stronger and can handle slightly higher borrowing costs. This move is expected to impact consumer debt, particularly credit card balances and mortgages.

The Fed raised the federal funds target range by 25 basis points to 4.75-5%.