The Fed is expected to raise interest rates for the first time in 3 years
The Federal Reserve is expected to raise interest rates for the first time in three years to combat persistent inflation exacerbated by the U.S.-Iran conflict. The move signals a hawkish shift in monetary policy to stabilize prices.
Why it matters
Interest rate hikes directly impact the cost of borrowing for consumers and businesses, influencing the broader economic trajectory.
The Federal Reserve is widely expected to raise interest rates Wednesday, in a show of its determination to attack stubborn inflation.
Investors are betting that the central bank will raise its benchmark interest rate by a quarter percentage point to a range between 3.75% and 4%. That would be the first rate increase in more than three years, making it more costly to borrow money to buy a car, grow a business or carry a balance on a credit card.
The U.S. war with Iran has rekindled inflation, pushing oil and gasoline prices higher and driving the price of diesel fuel into record territory. Higher interest rates won't automatically bring lower prices at the pump, but they do signal the central bank's commitment to restoring price stability.
Also covering this story
5 other newsrooms covered this event. We read each version separately.
Federal Reserve is expected to raise its benchmark rate, defying Trump’s demands - AP News
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Fed is poised to raise interest rates for the first time since 2023, defying Trump
Warsh’s Arrival Ended Trump’s War With the Fed. A Rate Hike Would Test the Truce. - WSJ
Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years
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