Federal Reserve Raises Key Interest Rate to 3.75%-4.00% Range, First Hike in Three Years

The Federal Reserve increased its benchmark overnight interest rate by a quarter of a percentage point, bringing it to a target range of 3.75%-4.00%. This marks the first rate hike by the U.S. central bank in three years, as it aims to combat persistent inflation. New projections indicate the policy rate could reach 4.00%-4.25% by the end of 2026 and 2027.