U.S. Federal Reserve Raises Interest Rates for the First Time in Three Years

The U.S. Federal Reserve has raised the benchmark interest rate by 0.25 percentage points, taking the range from 3.5%–3.75% to 3.75%–4%. This is the first rate increase in three years.

The decision comes at a time when U.S. inflation remains high. The Fed said the rate hike aims to support inflation’s return toward the 2% target.

President Donald Trump has criticized the decision and renewed his call for the Federal Reserve to lower interest rates. Meanwhile, Fed Chair Kevin Warsh has argued that inflation is still far too high and has stayed above desired levels for a long period.

The central bank’s decision also comes amid a period of high economic uncertainty and geopolitical tensions, which have also affected global energy prices. The Fed stressed it will continue to monitor economic developments and inflation to determine future monetary policy.