(2nd LD) Fed raises key interest rate by quarter point in 1st hike since 2023
WASHINGTON, Sept. 16 (Yonhap) -- The U.S. Federal Reserve on Wednesday raised it...
The U.S. Federal Reserve raised its benchmark interest rate by a quarter percentage point on Wednesday in its first increase since July 2023. The decision came during a two-day meeting of the Federal Open Market Committee (FOMC), where the Fed voted 12-0 to raise the rate to the 3.75–4.00 percent range. Despite President Donald Trump's calls for the central bank to lower borrowing costs, the Fed maintained higher rates, leaving a 1 percentage point gap between South Korea and the U.S. interest rates.
Fed Chair Kevin Warsh did not provide a dot plot projection, as he had pledged not to. Inflation concerns, including a 0.3 percent monthly gain in the core consumer price index for goods excluding food and energy, added to the Fed's decision. Warsh emphasized that inflation has been "too high" and "for too long," highlighting the Fed's commitment to achieving price stability.
The Fed's unanimous vote on the rate hike demonstrates its resolve to address price stability promptly.
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