Business & Finance
Federal Reserve raises US interest rates for first time in three years
The central bank increased its benchmark rate to a range of 3.75% to 4% to combat high inflation.
Latest update: Major U.S. banks raised their prime lending rate to 7% following the Federal Reserve's interest rate increase.
The short version
- The Federal Reserve unanimously voted to raise its benchmark interest rate by a quarter-percentage point to a target range of 3.75% to 4%.[The Guardian · CNBC · CBS News]
- Fed Chair Kevin Warsh cited persistent inflation above the central bank's 2% target, while President Donald Trump publicly opposed the move and called for rate cuts.[CNBC · Hacker News · Business Insider]
- Major U.S. banks subsequently increased their prime lending rates to 7%, directly impacting borrowing costs for consumers and businesses.[Hacker News]
- Projections show most Fed officials anticipate another rate increase before the end of the year.[The Guardian · CBS News · Hacker News]
Key facts
- The Federal Reserve unanimously voted to increase the federal funds rate by 0.25 percentage points to between 3.75% and 4%.[The Guardian · CNBC · CBS News]
- President Donald Trump posted on social media that U.S. interest rates should be 1% or lower.[Hacker News · Business Insider]
- Major commercial banks including JPMorgan, BNY, and KeyCorp raised their prime lending rates to 7%.[Hacker News]
- A majority of Federal Reserve officials project another benchmark rate increase before year-end.[The Guardian · CBS News · Hacker News]
What remains uncertain
- Prior to the meeting, private sector analysts differed on whether the central bank would implement a rate hike or leave rates steady.[BBC News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.
- Are interest rates on the way up again?BBC News - Business
- Higher interest rates and AI safety fears put the stock market to the test last weekCNBC
- US interest rates raised for first time in three yearsHacker News
- Trump calls for slashing interest rates to '1% or less' after the Fed's first hike in 3 yearsBusiness Insider metered
- US Federal Reserve raises interest rates for the first time since 2023The Guardian - World
- Federal Reserve raises interest rates for the first time since 2023CBS News - US
- Cramer’s week ahead: Falling oil could help stocks but Fed is the next big testCNBC
- Wall Street week ahead: Federal Reserve decision on interest rates, retail sales updateABC News - Business
- Surging inflation puts interest rates back in focus as policymakers meet in Japan, US and UKThe Guardian - World
- The Fed is likely to raise interest rates as inflation persists. What that means for consumersCNBC
- Warsh's credibility is on the line this week as Trump policies put pressure on Fed to hikeCNBC
- The stock market could do something strange this week after the Fed decisionCNBC
- Counting the votes: Warsh faces a tough battle as the Fed girds for expected interest rate hikeCNBC
- Federal Reserve is expected to raise its benchmark rate, defying Trump's demandsABC News - Politics
- Federal Reserve is expected to raise its benchmark rate, defying Trump's demandsABC News - Business
- No one and done: The Fed will hike at least two times over the next year, according to CNBC surveyCNBC
- What to expect from stocks and bonds if interest rates remain higher for longer, according to investing prosCNBC
- What a Fed rate hike could mean for mortgage rates (and what borrowers need to do now)CBS News - Top Stories
- Fed rate hike expected on Wednesday. See what it means for your money.CBS News - Top Stories
- Trump and the Federal Reserve are on a collision course over interest ratesNBC News - Top Stories
- Asian stocks mostly higher ahead of Fed's interest rate decisionABC News - US News
- The Fed is expected to raise interest rates for the first time in 3 yearsNPR - Top News
- Federal Reserve expected to raise interest rates for the first time since 2023ABC News - Top Stories
- Mortgage demand from homebuyers drops 19% from a year ago, as interest rates surge abruptly higherCNBC
- Fed raises interest rates for first time since 2023, defying Trump as inflation mountsNBC News - Top Stories
- The Federal Reserve just raised interest rates for the first time since 2023. Here's how mortgage rates may respond.CBS News - Top Stories
- Will a CD or a high-yield savings account be better to open after the Fed's rate hike?CBS News - Top Stories
- US Fed raises interest rates as inflation weighs on economyAl Jazeera
- Federal Reserve Raises Interest Rates for First Time in Three YearsThe Washington Sun
- Fed raises interest rates by quarter point to tackle inflationThe Washington Post - National metered
- Fed approves interest rate hike, signals one more to come this yearCNBC
- Fed raises rates: What it means for your credit cards, mortgages, savings accounts and auto loansCNBC
- Jeff Gundlach says the Fed should have hiked rates by more to fight rising inflationCNBC
- 3 takeaways for what the first Fed hike in 3 years means for your walletBusiness Insider metered
- US interest rates raised for first time in three yearsBBC News - World
- Here are five key takeaways from Wednesday's Fed rate hikeCNBC
- Trump demands 1% or lower interest rate after first Fed hike since 2023CNBC
- US Federal Reserve defies Trump with interest rate hikeFrance 24
- Analysis: How Trump could reignite the Fed independence fight after Warsh's rate hikeCNBC
- What smart people in business and economics are saying about the Fed interest rate hikeBusiness Insider metered
- Interest rate hike a 'reassuring' sign Fed is acting independently, economist saysPBS NewsHour - Politics
- Interest Rates Just Went Up. Here’s Why Consumer Tech Might Cost Even MoreCNET
- What to know about US Federal Reserve’s first interest rate hike in 3 yearsAl Jazeera
- Asian stocks are mixed after Wall Street slips following Fed's rate hike decisionABC News - Business
- Asian stocks are mixed after Wall Street slips following Fed's rate hike decisionABC News - US News
- The Fed just threw a wrench in Trump's midterm economic messageFox News
- Struggling US home buyers, and market, face new hurdles as mortgage rates near 7%ABC News - Business
- Stocks and bonds rally after Fed hikes rates and oil prices fallNBC News - Top Stories
- What the Fed's rate hike reveals about Warsh, Trump and inflationCBS News - US
- Why the Federal Reserve is lifting rates now, and what it meansABC News - Business
- Jim Cramer says history offers a playbook for navigating a Fed rate-hiking cycleCNBC
- Soaring mortgage rates and high prices are putting homeownership further out of reachNBC News - Top Stories
- Three words from Kevin Warsh have Wall Street wondering how far the Fed will go with rate hikesCNBC
- GOP senators defend Federal Reserve's decisionThe Hill
- Mortgage rates are nearing 7%. One house hunter says he's "despondent."CBS News - US
- Ever wonder how the Fed's interest rate actually works? We've got answersNPR - Top News
- Kevin Warsh may be the adult in the room. But can he calm the US economy?The Guardian - US
- Fed rate hike reflects new world of sticky inflation, faster growthABC News - Business
- Bessent says he has 'great confidence' in Warsh after Fed raises ratesThe Hill
- Fed official warns inflation is still too highThe Hill
- The double-whammy that's about to hit the US economyBusiness Insider metered
- Fed's Collins warns inflation could be 'notably' higher after backing rate hikeCNBC
- Market sees next Fed hike in October, following Barr comments and hot inflation readingCNBC
- Higher interest rates squeeze younger and lower-income households. 'A rate hike is a blunt tool,' says expertCNBC
- New York Fed’s Williams says it's 'reasonable' to expect another rate hike by year-endCNBC
- Philadelphia Fed's Anna Paulson says 'modest' rate moves likely ahead to tame inflationCNBC
- Warsh's regime change at the Fed pushes ahead – and meets resistanceCNBC