US Fed Hikes Rates by 25 Basis Points Amid High Inflation

The US Federal Reserve has made its first interest rate hike in three years as it battles high inflation. The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points, taking them to between 3.75 percent and 4.00 percent.

This move is expected to anger President Donald Trump, who has been critical of the Fed's monetary policy in the past. However, the central bank has cited 'elevated' inflation as a key factor in its decision, stating that the rate hike will support a 'timelier return' to its two-percent target for inflation.