Fed raises rates by 0.25% to 3.75-4.00%, first time since 2023

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The Federal Reserve's monetary policy committee voted unanimously, 12-0, to raise interest rates by 0.25% to a range of 3.75-4.00%, the first increase since July 2023, and signaled one more hike this year to curb inflation that remains elevated. President Donald Trump said he still has confidence in Kevin Warsh, the Federal Reserve chair he nominated, after the Fed decided to raise rates against what the US leader had called for. Trump posted a demand for the Fed to cut rates to 1% or lower, just hours after the US central bank announced its first rate hike since 2023. Meanwhile, the Bank of England is likely to hold rates steady at today's meeting, with most economists expecting the BoE to keep its policy rate at 3.75% through the end of the year, and seeing only 3 of 9 monetary policy committee members voting in favor of a hike this week. On the data front, US retail sales rose 1.2% in August after a revised 0.5% decline in July, beating analysts' expectations of a 0.7% increase for the month.

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％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Fed unanimously raised the effective federal funds rate by 0.25% to 3.75-4.00%, the first hike since 2023, lifting the policy rate itself.

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