Fed hikes interest rates after three years
The U.S. Federal Reserve Council approved the first increase in interest rates in over three years, raising the rate by 25 basis points to a range of 3.75% to 4%. This move aims to combat the high inflation resulting from rising oil prices and other economic factors. The committee anticipates the possibility of implementing an additional increase later this year, with inflation expected to reach 3.7% and the unemployment rate to decrease to 4.1%. The decision led to a rise in Treasury bond yields and increased borrowing costs, as inflationary pressures continue due to higher energy prices and investments in technology such as artificial intelligence.
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