US Federal Reserve Raises Interest Rate for First Time Since July 2023

The US Federal Reserve raised its key interest rate for the first time since July 2023 by 0.25 percentage points, bringing the federal funds rate to a new target range of 3.75 to 4 percent.

The decision was made by the Fed's rate-setting Federal Open Market Committee, which unanimously agreed on the move.

Twelve out of 18 policymakers who submitted projections implied another quarter-point hike by the end of this year, while four predicted two more hikes and two thought the rate would stay at the new level.

The increase in interest rates is aimed at containing resurgent inflation caused by the war in Iran, which has pushed up energy and other consumer prices.