The US Federal Reserve has raised interest rates for the first time since 2023, lifting its benchmark rate by a quarter-point to a target range of 3.75 per cent to 4 per cent, in a move that could add to borrowing costs for millions of American households and businesses.
Announcing the decision in Washington, chair Kevin Warsh said: 'Inflation is too high, and has been for too long.' The increase could add to costs for mortgages, credit cards and car loans, although the impact will vary across different types of borrowing.
