Fed: Unanimous decision: US central bank raises key interest rate for the first time in around three years
A strong labor market and persistently high inflation had argued for an increase. The central bankers are thus opposing the wishes of US President Donald Trump.
The US Federal Reserve has raised its key interest rate by 0.25 percentage points to a range of 3.75 to 4.00 percent. The move was widely expected, with markets pricing in a 92 percent chance of an increase. The decision comes as the US inflation rate remains high, with prices rising 3.4 percent year-over-year in August, and the core inflation rate at 2.4 percent.
The Fed's target inflation rate is 2 percent, which has been exceeded for over five years. The central bank also cited strong job growth, with recent data showing significant job gains.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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