
Global Economy
Premium
Global Economy
Fed Raises Rates by 0.25% Amid Inflation Fears; New Hike Likely by Year-End
The Federal Reserve has raised its benchmark interest rates by 0.25 percentage points to combat persistent inflation, bringing the target range to 3.75%-4%. This marks the first rate increase since summer 2023, with markets anticipating another tightening measure by year-end. Updated economic projections now forecast 3.7% annual inflation by late 2026—up slightly from June's estimate—indicating continued monetary policy normalization.