The US Federal Reserve has raised interest rates for the first time since 2023, stepping in to tackle stubborn inflation that remains well above its long-term target and ending a prolonged period of policy stability.
After a two-day meeting on Wednesday, the Federal Open Market Committee raised the benchmark interest rate by 25 basis points to a range of 3.75%-4.00%. The move marks a significant shift for the US central bank, which had kept rates unchanged through its recent meetings as it assessed the impact of higher energy prices, tariffs and broader price pressures on the economy.
