Fed Raises Rates for First Time in Three Years

Live updates

1. 2h ago

   Federal Reserve Raises Interest Rates for First Time Since 2023

   The Federal Reserve has increased interest rates for the first time in three years to combat stubborn inflation. This move marks the first rate hike since 2023. The central bank has signaled that one additional rate increase is likely before the end of the year. The decision directly impacts borrowing costs for loans and credit cards while affecting returns for savers and investment portfolios.

   Why it matters

   Interest rate adjustments are the primary tool the Fed uses to control inflation by making borrowing more expensive. This shift ends a three-year period of steady or declining rates. The timing coincides with ongoing pressure to stabilize prices across the economy.

   What is confirmed

   • The Federal Reserve raised interest rates for the first time since 2023.
   • This is the first time the Fed has raised rates in three years.

   Still unconfirmed

   • Warsh is likely to side with financial markets over Trump regarding the rate hike.
   • The rate hike was prompted by stubborn inflation.
   • The Fed signals one more rate hike will occur this year.

   What to watch next

   • Confirmation of the second signaled rate hike for the year
   • New inflation data reports
   • Official Federal Reserve statements on future rate trajectories
   Sources used for this update (9)

   1. AP News — Warsh likely to side with financial markets over Trump as Fed rate hike expected
   2. CNBC — Fed approves interest rate hike, signals one more to come this year
   3. WSJ — Fed Raises Rates for First Time in Three Years
   4. CNN — Fed raises interest rates for the first time since 2023
   5. WJLA — Expert offers debt advice after Federal Reserve raises interest rates
   6. PBS — What the Fed rate hike likely means for you
   7. CNN — The Fed just raised rates. Here’s what it means for borrowers and savers
   8. foxbusiness.com — Federal Reserve hikes interest rates for first time since 2023 amid stubborn inflation
   9. Yahoo Finance — What a Fed rate hike means for your bank accounts, loans, credit cards, and investments
   confidence 90%