US Federal Reserve Raises Interest Rates Amid Ongoing War Inflation Concerns

The US Federal Reserve has increased interest rates for the first time in three years to combat high inflation, fueled by the ongoing war between the US and Iran.

The rate hike of 0.25 percentage points brings the target range to 3.75-4%.

Despite President Donald Trump's calls to cut rates, Federal Reserve chairman Kevin Warsh has opted for a rate increase to bring inflation back in line with the Fed's target of 2%.

The decision was widely expected, given last week's data showing US inflation at 3.4%, driven largely by increasing energy costs and petrol prices.