US Federal Reserve Increases Benchmark Interest Rate

The US Federal Reserve's Federal Open Market Committee unanimously voted to raise its benchmark interest rate by 0.25 percentage points, setting the new target range at 3.75% to 4.00%. This marks the first rate hike since 2023 and responds to persistent inflation, with consumer prices rising 3.4% over the past year, exceeding the Fed's 2% target. This decision impacts borrowing costs and the broader economy.