Fed Raises Rates 25 Basis Points, Signals Another Hike This Year
- On Wednesday, the Federal Reserve unanimously voted to raise interest rates to between 3.75 and 4.00 per cent, marking the first increase in three years.
- Persistent inflation driven by rising oil prices during the U.S.-Israeli conflict with Iran prompted the action, as officials aimed to support a "timelier return" to their 2 per cent target.
- Fed Chairman Kevin Warsh emphasized that "the plain fact is that inflation is too high and has been for too long," while the Dow Jones Industrial Average tumbled more than 850 points after the announcement.
- Following the announcement, the two-year Treasury yield jumped to 4.73% from 4.67% late Tuesday, while JPMorgan Chase fell 2%, one of the market's heaviest weights.
- Projections published Wednesday show at least 12 of 18 policymakers expect another rate hike before year-end, with the median forecast suggesting the federal funds rate will reach 4.1%.
379 Articles
379 Articles
The main US indices came to negotiate on positive ground throughout the session, but reversed the trend after the Fed's decision and the central bank's statements. The US monetary authority increased the rate by 25 basis points, for an interval between 3.75% and 4%, in a unanimous decision, with 12 votes in favour.
Federal Reserve hikes key interest rate for first time in 3 years, defying Trump demands for a cut
<p>The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation, a move that could spur a sharp response from the White House.</p><p>The quarter-point increase lifts the Fed’s key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards. In a set of quarterly projections, the Fed also signaled that its rat…
Federal Reserve hikes key rate for 1st time in 3 years - Regional Media News
(SRN NEWS) - The Federal Reserve is raising its benchmark interest rate by a quarter of a percentage point, moving it to approximately 3.9 percent in a major shift for the central bank. It is the first rate increase since 2023. Federal Reserve officials say [...]
At his inauguration he had promised that he would keep the Federal Reserve independent of political pressure. Kevin Warsh maintained his commitment and despite US President Donald Trump's continuing appeals at a cut in interest rates, the number one central bank, strongly wanted by tycoon, raised the cost of money. The US central bank decided to raise the rate on federal funds by a quarter of a percentage point bringing it into a range of 3.75% …
Wall Street Rollercoaster: Fed Hikes Interest Rates Amid Global Tensions
Wall Street experienced volatility as the U.S. Fed raised its key interest rate, its first in over three years, to combat high inflation linked to soaring oil prices amid the U.S.-Israeli war against Iran. Market reactions were mixed as investors digested additional geopolitical developments and Fed comments.
The Fed’s First Rate Hike Since 2023 Is a Problem for Renewables
The Federal Reserve raised the federal funds rate by a quarter point, the central bank announced Wednesday afternoon, its first rate change since Chairman Kevin Warsh took his seat in May and its first rate hike in over three years.The federal funds rate will now sit between 3.75% and 4%. According to projections by regional Federal Reserve presidents and members of the Board of Governors, the central bank expects to hike rates one more time thi…
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