US Federal Reserve raises interest rates for the first time since 2023
Fed committee votes unanimously to raise interest rate by a quarter-percentage point to a range of 3.75% to 4%
TL;DR
- The Federal Reserve raised its benchmark interest rate by 0.25% to a range of 3.75% to 4%.
- This is the first interest rate hike since July 2023, aimed at curbing inflation.
- A majority of Fed officials predict at least one more rate hike before the end of the year.
- Inflation remains elevated, partly due to the US-Israel war impacting energy prices.
- Concerns over inflation have led to a sell-off in the US bond market.
- Higher interest rates affect various loans, including mortgages and car payments.
- Voters are concerned about the cost of living, influencing political campaigns.
- The Fed's goal is to return inflation to its 2% target, projected to take until 2029.