Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
Officials said 16 of 18 participants expected another increase, as inflation stayed elevated and Treasury yields and mortgage rates climbed.
- The Federal Reserve raised its benchmark interest rate by a quarter percentage point to roughly 3.9%, marking the central bank's first rate increase in three years.
- Led by Fed Chair Kevin Warsh, the Federal Open Market Committee voted for the hike to tackle stubbornly persistent inflation—driven in part by recent spike in energy costs—and signaled that another increase to 4.1% could follow later this year.
- The decision directly defies public demands from President Donald Trump, who repeatedly called for immediate rate cuts and argued the U.S. should enjoy the "lowest interest rate in the world".
- The rate hike is expected to push borrowing costs higher across the economy, impacting consumer mortgages, credit cards, and auto loans just seven weeks ahead of the November midterm elections.
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101 Articles
ASX set to slide, Wall Street steady as Fed raises rates, signals one more hike this year
The US stock market has pared some early gains after the Federal Reserve showed it’s trying to get the nation’s high inflation under control by hiking interest rates for the first time in three years.
US President Donald Trump had repeatedly spoken out for lower interest rates. It is the first increase since 2023.
After a waiting period of more than three years in which no interest rate hike occurred, the Federal Reserve raises interest rates by 0.25% to a range of 3.75%-4.00% ● The move is prevented by a surge in oil prices and a hot price index in August ● The Fed signals: another interest rate hike this year ● Bond yields jump to a nearly two-decade high, and Chairman Warsh clarifies: "We have removed monetary expansion, the economy is strengthening"
The US central bank has increased its rates by 0.25%. Another rise is possible by the end of the year: inflation remains high. President Trump had repeatedly called for a cut in rates to support the economy.
US Federal Reserve Hikes Interest Rate for First Time Since 2023, Raises Key Rate to 3.9%, Signals Another Hike
The US Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, taking the federal funds target range to 3.75%-4.00%. It was the first interest rate increase by the central bank since July 2023 and the first rate hike under Fed Chair Kevin Warsh. US Federal Reserve Hikes Interest Rate for First Time Since 2023, Raises Key Rate to 3.9%, Signals Another Hike.
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