Federal Reserve raises policy rate by 0.25 percentage points to 4.0%
Fed lifts federal funds rate by 0.25 percentage points to 4.0% — first hike in more than three years.
The Federal Reserve raised its policy interest rate by 0.25 percentage points on Wednesday, lifting the federal funds rate from 3.75% to 4.0% — the first increase in more than three years.
Officials said the move responds to persistently high inflation that has not yet returned to the central bank's target range. The increase comes despite public calls from U.S. President Donald Trump for lower interest rates.
Context and regional moves
Last week the European Central Bank also raised its key rate — the second time this year — citing higher inflation pressures that officials linked to the war in Iran. Central banks across advanced economies have been weighing how quickly to tighten policy as price pressures persist.
Market analysts said a 0.25 percentage point rise was widely expected but signaled the Fed's willingness to keep policy restrictive until inflation shows clearer signs of easing.
Policymakers will now monitor economic data in the coming months to judge whether further rate increases are necessary to bring inflation down toward target levels.
Photo: press material from the event
