US Federal Reserve raises interest rates for first time in three years as inflation risks mount
The US Federal Reserve raised interest rates for the first time in three years on Wednesday, as stubbornly high inflation and rising oil prices caused by supply disruptions in the Middle East ripple across the global economy. Policymakers at the US central bank raised interest rates by 25 basis points, bringing the target range to 3.75 to 4 per cent, ending about nine months of stasis. The UAE…
On Wednesday, the US Federal Reserve increased interest rates for the first time in three years due to persistent high inflation and rising oil prices caused by disruptions in Middle Eastern supply chains. The central bank raised rates by 25 basis points, setting the target range between 3.75% and 4%. This move completes a significant shift for the Fed, which had previously been expected to lower rates.
Inflation concerns, partly due to geopolitical tensions, remained elevated but domestic spending has been resilient. The Fed anticipates further rate hikes this year, with 12 of the 19 members projecting the federal funds rate to fall within the 4% to 4.25% range. The decision comes amid an artificial intelligence spending boom, ongoing economic growth, and the Trump administration's recent tariffs on Canada.
Despite these factors, the Fed's decision highlights growing support among officials for tighter monetary policy to combat inflation.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- US Federal Reserve raises interest rates for first time in three years as inflation risks mount thenationalnews.com
- US Federal Reserve hikes interest rate to 3.75-4% range; first time since 2023 timesofindia.indiatimes.com
- Federal Reserve raises interest rates for the first time since 2023 cbsnews.com
- US Federal Reserve votes to hike rates for the first time since 2023 theguardian.com
- US Federal Reserve raises interest rates for first time in 3 years, risking Trump’s ire scmp.com
- Fed meeting updates: Warsh raises rates to 3.75%-4% as inflation persists hindustantimes.com
- US Federal Reserve raises interest rates by 25 basis points, first hike since 2023 english.ajel.sa
- US Federal Reserve raises interest rate by 25 bps to 3.75-4% range business-standard.com
