US Federal Reserve raises interest rates to 3.75%-4%

The Federal Reserve hiked US interest rates by 25 basis points to 3.75%-4% from 3.5%-3.75% in a unanimous decision, marking the first increase in more than three years.

Fed Chair Kevin Warsh stated the move was necessary because inflation has remained too high for too long, driven by soaring energy prices amid the ongoing US-Israel war with Iran.

Major US banks including JP Morgan, KeyCorp, and BNY raised their prime lending rate to 7% from 6.75%, while most policymakers project further hikes to 4-4.25% by the end of the year.