Investors are reassessing the outlook for U.S. interest rates after the Federal Reserve raised borrowing costs for the first time since 2023, with uncertainty over the pace and extent of further tightening expected to drive volatility across financial markets.
The Fed raised its benchmark interest rate by 25 basis points on Wednesday to a range of 3.75%-4.00%, as policymakers sought to contain inflation that has remained above the central bank's 2% target. The decision came despite repeated calls from President Donald Trump for lower interest rates.
