The Federal Reserve's first interest-rate increase in more than three years is rippling through global financial markets, strengthening the dollar and keeping bond yields elevated as central banks contend with renewed inflation pressure tied partly to higher energy costs.
The Fed on Wednesday raised its benchmark federal funds rate by a quarter percentage point to a range of 3.75% to 4%, its first increase since July 2023. The Federal Open Market Committee approved the decision unanimously and said inflation remained elevated while economic activity continued to expand at a solid pace, Federal Reserve data showed.
