Fed expected to hike interest rates for first time since 2023. See what it means for your money.

Live updates

1. 1h ago

   Federal Reserve raises benchmark interest rate for first time since 2023

   The Federal Reserve has increased the benchmark federal funds rate for the first time in three years. Policymakers took this action to combat stubborn inflation that remains well above the central bank's 2% target. The move comes despite demands from Donald Trump for the Fed to avoid rate hikes. Analysts suggest the increase is intended to curb rising prices and maintain the credibility of the central bank, though investors are warned to expect short-term volatility in the stock market.

   Why it matters

   The Fed has held rates steady since 2023 while attempting to stabilize the economy. This decision creates a direct conflict between the central bank's monetary policy and political pressure from Trump. The outcome reflects a priority on inflation control over political demands.

   What is confirmed

   • The Federal Reserve raised the benchmark interest rate for the first time since 2023.
   • Inflation remains above the Federal Reserve's 2% target.
   • The rate hike occurred despite demands from Donald Trump.

   Still unconfirmed

   • Investors should brace for short-term volatility if the Fed increases rates.

   What to watch next

   • Market reaction to the rate hike
   • Future inflation data reports
   • Further public responses from Donald Trump
   Sources used for this update (8)

   1. AP News — Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands
   2. The Washington Post — Opinion | Raising interest rates will curb inflation and maintain Fed credibility
   3. The New York Times — Warsh Set for Showdown With Trump as Fed Faces Pressure to Raise Rates
   4. Yahoo Finance — Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years
   5. CBS News — Fed expected to hike interest rates for first time since 2023. See what it means for your money.
   6. www.fool.com — The Fed Could Be About to Raise Rates for the First Time Since 2023. Here's What History Says Happens to Stocks Next.
   7. www.usatoday.com — Interest rate decision live: Fed expected to hike rates as prices rise
   8. www.foxbusiness.com — Federal Reserve hikes interest rates for first time since 2023 amid stubborn inflation
   confidence 95%