U.S. Federal Reserve hikes rates again
The U.S. Federal Reserve has raised interest rates for the first time since 2023, in a move to combat the rising inflationary pressures caused by higher energy prices due to the war with Iran. The Federal Reserve decided to increase the interest rate by a quarter of a percentage point, bringing the target range to between 3.75% and 4%, in an effort to return inflation to its 2% target. This decision comes amid ongoing difficulties in reducing inflation, with oil prices increasing by more than 75% since the start of the year and gasoline prices rising by over 45% since the outbreak of the war. These factors have pushed inflation to 3.4% in August, and further monetary tightening is expected in the coming months.
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