The Economic Times

A 25 bps hike: US Federal Reserve raises interest rates for first time since 2023

The US Federal Reserve increased interest rates by twenty-five basis points on Wednesday. This move aims to control inflation that remains significantly above the central bank's target. Consumer inflation stayed at three point four percent in August, prompting this necessary action. Fed Chair Kevin Warsh faces a significant test of his credibility with this decision. Analysts anticipate another rate increase in December, impacting financial conditions.