Fed Raises Interest Rates for the First Time in More Than 3 Years

The Federal Reserve raised short-term interest rates for the first time in more than three years on Wednesday, seeking to rein in inflation that has remained above its target. At the conclusion of a two-day policy meeting, the Federal Open Market Committee voted to raise its target for the federal-funds rate by a quarter of a percentage point to 3.75% to 4%. It was the first time since December 2025 that the Fed changed interest rates, and the first increase since July 2023.