Fed raises benchmark rate to 3.75%-4% in first hike since 2023

The U.S. Federal Reserve (Fed) has increased the benchmark interest rate by 25 basis points to a target range of 3.75%-4.00%, marking the first hike since July 2023. The decision was unanimous and widely expected. The FOMC stated that economic activity is expanding at a solid pace despite geopolitical uncertainties. The hike aims to return inflation to the 2% target, and market participants anticipate further rate adjustments this year.