Fed Raises US Interest Rates for the First Time in Over 3 Years
The Federal Reserve had not raised its benchmark interest rates, which guide borrowing costs, since mid-2023.
TL;DR
- The Federal Reserve increased interest rates by a quarter of a percentage point.
- The decision was unanimous and aimed at curbing inflation.
- This is the first rate hike by the Fed since mid-2023.
- Interest rates are now in the range of 3.75% to 4%.
- Fed Chair Kevin Warsh stated that inflation has been too high for too long.
- Warsh noted increasing inflation risks while labor market risks are balanced.