US Federal Reserve raises interest rates for first time since 2023

The Federal Reserve has raised its benchmark rate by a quarter point to 3.75%–4%, its first increase since 2023, citing elevated inflation.

• The Federal Open Market Committee voted unanimously on September 16 to raise rates by 25 basis points after its two-day meeting.
• The committee said in a statement that the move "will support a timelier return" to its 2 percent inflation target.
• A majority of Fed officials projected another rate hike before year's end, after annual inflation ran at 3.4% in August.
• Trump called for lower rates and said in February that Chair Kevin Warsh would not have been nominated unless he was willing to cut them.
• Gold fell 0.86% to about $4,257 per ounce in the first market reaction to the Fed's hike.
• The US dollar rose about 0.68% to 100.29 points against major currencies, according to Bloomberg.
• The White House criticized the Fed's decision on Wednesday, calling it an 'unfortunate' step lacking a convincing economic rationale.
• Iranian Parliament Speaker Mohammad Bagher Ghalibaf mocked the Fed's decision, asking whether raising rates could open the Strait of Hormuz or add an extra barrel of oil.
• Trump called for immediate rate cuts to 1 percent or lower in response to the Fed's decision.
• Fed Chair Kevin Warsh said that the central bank's primary focus remains on fighting inflation.
• US stocks fell after the announcement, while gold extended its decline to over one percent.
• JPMorgan, KeyCorp, and BNY raised their prime lending rates in response to the Fed's hike.