US interest rates raised for first time in three years

The Federal Reserve has raised US interest rates for the first time in over three years, aiming to curb inflation. The rates were increased to a range of 3.75%-4% from 3.5%-3.75%. This decision was unanimous within the Federal Reserve, despite criticism from President Donald Trump, who had advocated for lower rates. Federal Reserve Chair Kevin Warsh stated that the move was a "sober and responsible decision" to address persistent high inflation, which has been a problem for more than five years.

Higher interest rates make borrowing more expensive, but they can also lead to better returns on savings. While the Fed's primary goal is to stabilize prices, there are concerns that higher rates could dampen economic growth and discourage business investment. Inflation has been a major concern for voters ahead of the midterm elections, with soaring fuel prices and general cost increases.

The Fed aims to keep inflation at 2% or below, and they believe that inflation should ease in the coming years, with a forecast of reaching the Fed's 2% target by 2029.