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The Federal Reserve raised its key interest rate by a quarter percentage point to a target range of 3.75%-4% on Wednesday, marking its first rate increase since July 2023.
The decision was unanimous, and the central bank's latest projections indicate another quarter-point increase is expected this year.
"The plain fact is that inflation is too high and has been for too long," said Fed Chair Kevin Warsh.
Daniela Hathorn, senior market analyst at Capital.com, noted that while the 25 basis point hike was expected, the more significant signal was that policymakers do not believe the tightening cycle is finished.
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