US Federal Reserve raises interest rates for first time since 2023
The US Federal Reserve raised its key interest rate to 3.75-4.00% amid persistent inflation, marking its first rate increase since July 2023.
The US Federal Reserve has raised its benchmark interest rate by a quarter-percentage point to a range of 3.75% to 4.00%, marking the central bank's first rate increase since July 2023.
Fed Chair Kevin Warsh stated that the unanimous decision aims to accelerate a return to the institution's two percent inflation target amid persistent price pressures. Quarterly projections published alongside the announcement indicate that a majority of policymakers anticipate at least one additional rate hike before the end of the year.
Following the announcement, major Wall Street stock indices declined as Warsh emphasized ongoing inflation concerns during a post-meeting press conference, with banking shares experiencing notable losses.
Sources: Cyprus Mail, Der Standard, ORF, Sweden Herald, The Guardian.
Sources
- The Guardian — US Federal Reserve raises interest rates for the first time since 2023
- Cyprus Mail — Fed forecasts see latest hike followed by another before end of year
- Sweden Herald — Fed chief’s inflation warning sends Wall Street lower
- ORF — Fed hebt Zinssatz erstmals seit 2023 an
- Der Standard — US-Notenbank erhöht erstmals seit Juli 2023 wieder Leitzins