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Federal Reserve raises interest rates for first time since 2023 FAST-MOVING
The U.S. Federal Reserve has raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4.00%. This decision, reached unanimously by the Federal Open Market Committee (FOMC), marks the first rate hike since 2023 and signals a return to monetary tightening to combat persistent inflation, which remains above the Fed’s 2% target.
Fed Chair Kevin Warsh emphasized that the central bank’s primary focus remains price stability. Despite political pressure from President Donald Trump to lower borrowing costs, the Fed moved to address economic indicators and energy-driven inflationary pressures. Projections from the FOMC suggest that further rate increases could occur through 2026.
Following the Fed's move, several Gulf central banks adjusted their own rates in alignment. The Central Bank of the UAE raised its Base Rate to 3.90%. The Saudi Central Bank increased its Repo rate to 4.50% and its Reverse Repo rate to 4.00%. Additionally, the Central Bank of Bahrain, the Central Bank of Oman, and the Qatar Central Bank also implemented rate hikes to maintain monetary stability.
Entities
Bank of England · Bank of Japan · CME Group · Central Bank of the UAE · Donald Trump · FOMC · Federal Open Market Committee · Federal Reserve · Iran · Kevin Warsh · Saudi Arabia · Saudi Central Bank
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Personal Consumption Expenditures (PCE) index is at 3.7% and the Consumer Price Index (CPI) is at 3.4% year-over-year.
- [○ 1 SOURCE] US government debt has reached approximately $40 trillion.
- [● 2 SOURCES] Oil prices have reached levels near $100 per barrel. bitcoinethereumnews.com
- [● 11 SOURCES] Markets expect the Federal Reserve to raise interest rates by 0.25 percentage points to combat inflation. bitcoinethereumnews.com
- [● 4 SOURCES] The Consumer Price Index (CPI) annual inflation rate was 3.4 percent for August. bitnewsbot.com
- [○ 1 SOURCE] The Federal Reserve voted 11-1 to hold its benchmark interest rate in the 3.50%-3.75% range.
- [● 6 SOURCES] The Federal Reserve's policy rate currently stands in the 3.50%–3.75% range. bitnewsbot.com
- [● 5 SOURCES] The conflict involving Iran has contributed to volatile energy markets and elevated inflation.
- [● 11 SOURCES] President Donald Trump has publicly demanded that the Federal Reserve cut interest rates. bitnewsbot.com · bitcoinethereumnews.com
- [● 9 SOURCES] Federal Reserve Chairman Kevin Warsh has indicated that inflation has not yet been sufficiently controlled. bitnewsbot.com
- [● 22 SOURCES] Financial markets expect the Federal Reserve to implement a 0.25 percentage point interest rate hike. bitnewsbot.com · cincodias.elpais.com · businessamlive.com · www.formosadeportiva.com.ar · www.bilanz.ch · +5 more
- [● 2 SOURCES] The CME FedWatch tool puts the odds of a Federal Reserve interest rate hike at 94.5%. bitnewsbot.com