WorldEconomy
Federal Reserve raises key rate for first time in three years
The Federal Reserve raised its benchmark interest rate by a quarter point to about 3.9%, its first increase since 2023, citing stubbornly high inflation. It signaled another hike could come later this year, to about 4.1%, potentially raising borrowing costs for mortgages, auto loans and credit cards.
The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023, a quarter-point increase that lifts the key rate to about 3.9%. The central bank said the move was aimed at quelling stubbornly high inflation.
In quarterly projections, the Fed signaled its rate-setting committee could raise the rate again later this year to about 4.1%.
The increase could over time result in higher borrowing costs for mortgages, auto loans and credit cards. It comes as Americans are already struggling with high costs for groceries, gas and housing.
Affordability has taken on a leading role in the upcoming midterm elections, which the source said are seven weeks away.
The report described the decision as defying Trump's demands for a cut. The supplied body did not include further details on those demands.
- Federal Reserve hikes key rate
- US Federal Reserve
- US interest rate
- US inflation
- Trump on Federal Reserve interest rates
- rate hike
- Kevin Warsh
From
WorldEconomy
Federal Reserve raises key rate for first time in three years
The Federal Reserve raised its benchmark interest rate by a quarter point to about 3.9%, its first increase since 2023, citing stubbornly high inflation. It signaled another hike could come later this year, to about 4.1%, potentially raising borrowing costs for mortgages, auto loans and credit cards.
The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023, a quarter-point increase that lifts the key rate to about 3.9%. The central bank said the move was aimed at quelling stubbornly high inflation.
In quarterly projections, the Fed signaled its rate-setting committee could raise the rate again later this year to about 4.1%.
The increase could over time result in higher borrowing costs for mortgages, auto loans and credit cards. It comes as Americans are already struggling with high costs for groceries, gas and housing.
Affordability has taken on a leading role in the upcoming midterm elections, which the source said are seven weeks away.
The report described the decision as defying Trump's demands for a cut. The supplied body did not include further details on those demands.
- Federal Reserve hikes key rate
- US Federal Reserve
- US interest rate
- US inflation
- Trump on Federal Reserve interest rates
- rate hike
- Kevin Warsh
From