The Federal Reserve on Wednesday raised its benchmark interest rates for the first time since 2023, in a move aimed at slowing inflation that picked up again last month.
\n\nThe Fed’s hike of 0.25% brings the central bank’s flagship rate to between 3.75% and 4.00%.
\n\nThe Fed’s policymakers unanimously supported the rate hike and signaled one more interest rate hike could come before the end of the year.
\n\nThe Fed’s decision, which defied the president’s wishes for lower interest rates, is in response to elevated inflation readings as the war with Iran drives up prices.
\n\n“Uncertainty remains elevated owing, in part, to geopolitical developments,” the Federal Reserve’s statement read. “Today’s policy action will support a timelier return to the Committee’s 2 percent goal.”
\n\nThe hike could also be the start of a rate-hiking cycle. Historically, when a central bank raises rates once, it follows that up with additional increases.
\n\nReleased alongside the Fed’s rate decision today were economic projections. As of this week, all but two members of the Federal Open Market Committee forecast another rate increase later this year.
\n\nThe rate hike comes despite years of demands by President Donald Trump for lower interest rates. In early February, Trump…
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