Fed Raises Interest Rates For First Time In Three Years

Policymakers voted unanimously to raise the rate from a range of 3.5 to 3.75% to a new target rate of 3.75 to 4%.

The Federal Reserve has raised its benchmark rate for the first time in over three years.

Policymakers voted unanimously to raise the rate from a range of 3.5 to 3.75% to a new target rate of 3.75 to 4%. The 25-basis-point increase marks the first interest rate hike since July, 2023 and comes after the Fed left rates unchanged at its first five meetings this year.

Chair Kevin Warsh said the raised rates come in support of the Federal Open Market Committee’s dual mandate to ensure price stability and promote full employment in the economy, saying that the panel “will deliver price stability.”