Business Brief (Sept. 17): U.S. Fed Hikes Rates for First Time in Three Years

U.S. Fed Hikes Interest Rates

The U.S. Federal Reserve on Wednesday raised its target range for the federal funds rate by 25 basis points to 3.75% to 4%, in line with mainstream market expectations. This marks the Fed’s first rate hike in more than three years.

Fed Chair Kevin Warsh reiterated that inflation remains too high and has persisted for too long, sending the three major U.S. stock indexes lower.