Federal Reserve hikes rates after three years

The U.S. Federal Reserve raised interest rates by 25 basis points for the first time in over three years, as part of its efforts to combat inflation linked to rising oil prices and other factors. The decision to hike rates was unanimous, bringing the target range to 3.75%–4%. There are expectations of further increases later this year, as most officials see the need for monetary tightening to address inflation, which is estimated to reach 3.7% by year's end. The committee also lowered its unemployment rate forecast to 4.1%, amid rising Treasury yields and higher borrowing costs, such as mortgage rates which have increased to 7.19%.

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