U.S. Fed raises key interest rate for 1st time since 2023

WASHINGTON - The U.S. Federal Reserve on Wednesday raised its benchmark interest rate for the first time since July 2023 and suggested further possible steps this year to contain resurgent inflation caused by the war in Iran.

The 0.25 percentage-point hike brings the federal funds rate, which commercial banks charge each other for overnight loans, to a new target range of 3.75 to 4 percent.