US Fed Rate Hike: Fed Raises Rates 25 Bps To 3.75%-4%; First Increase In 3 Years, Signals Higher Rates Ahead

US Fed Rate Hike: The decision was unanimous, with all 12 members of the Federal Open Market Committee (FOMC) voting in favour of the increase.

US Federal Reserve Interest Rate Decision: The US Federal Reserve on Wednesday raised its benchmark interest rate by 25 basis points to 3.75%-4%, delivering its first rate hike since July 2023. The decision was unanimous, with all 12 members of the Federal Open Market Committee (FOMC) voting in favour of the increase.

The Fed said the US economy continues to grow at a solid pace. It noted that consumer spending remains resilient, productivity growth is strong and business investment is robust. The unemployment rate has changed little, while job gains have broadly kept pace with the workforce.