Federal Reserve raises interest rates for the first time since 2023

Federal Reserve interest rate hike monetary policy inflation Bank of Japan

The Federal Reserve has raised interest rates by 25 basis points to a target range of 3.75%–4.00%, marking its first hike since 2023. Fed Chair Kevin Warsh emphasized that inflation remains too high for too long, despite a strengthening economy. Analysts at Goldman Sachs suggest an additional hike in October is the most likely scenario to reach the 2% inflation target.

This decision has triggered significant market volatility. The US dollar index rose 1.1% to 100.20 points, while 10-year Treasury yields climbed toward the 5% threshold. In response to the hawkish stance, gold prices faced downward pressure, though some markets saw mixed results due to fluctuating oil prices.

Globally, central banks are also adjusting policies. The Bank of Japan increased its interest rate by 0.25 percentage points to 1.25%, its highest level in 31 years. Meanwhile, Bank of America strategists warned that the Fed's tightening cycle may not be over, suggesting rates could potentially reach 5.5% if inflation remains persistent.

Entities

Bank of America · Bank of Japan · Borsa İstanbul · CME Group · Donald Trump · Dow Jones · FOMC · Federal Reserve · Gold · Goldman Sachs · Grayscale · Kevin Warsh

Claims

What the coverage asserts, and how many sources carry each claim.

[● 6 SOURCES] The Federal Reserve raised the benchmark interest rate by 25 basis points to a range of 3.75% to 4.00%. www.imaeil.com · www.fehmarn24.de · www.kurierverlag.de · www.alainguillot.com
[● 2 SOURCES] Brent crude oil prices dropped to around $104 per barrel due to easing supply concerns. www.alainguillot.com
[○ 1 SOURCE] US 10-year Treasury yields fell to 4.939% following the rate decision.
[○ 1 SOURCE] The US dollar index declined to 99.910 as markets digested the Fed's move.
[○ 1 SOURCE] Jeffrey Gundlach, CEO of DoubleLine Capital, argued the Fed should have raised rates by 50 basis points to better address inflation.
[● 6 SOURCES] Sixteen out of eighteen Federal Reserve policymakers anticipate at least one additional rate hike within the year. www.alainguillot.com · www.ekonomist.com.tr · www.sondakika.com
[● 4 SOURCES] The Federal Open Market Committee (FOMC) voted unanimously to increase interest rates. www.fehmarn24.de · www.kurierverlag.de · www.imaeil.com
[● 2 SOURCES] Bank of America analysts suggest the Federal Reserve could raise interest rates above 5%. www.reporter.gr
[● 4 SOURCES] Donald Trump criticized the rate hike, arguing that interest rates should be at 1 percent or lower. www.fehmarn24.de · www.kurierverlag.de · www.ekonomist.com.tr · www.sondakika.com
[● 2 SOURCES] New variable-rate mortgage loans at Mitsubishi UFJ Bank reached 1.195% in September. news.cube-soft.jp
[● 5 SOURCES] Rising energy costs driven by Middle East instability are contributing to inflation risks. news.cube-soft.jp · www.chinesepress.com · www.economiafinanzas.com
[● 6 SOURCES] Board members Toichiro Asada and Ayano Sato dissented from the rate increase. cryptoweek.fr · news.cube-soft.jp · www.economiafinanzas.com