Fed raises rates after 1,148-day pause

• The Federal Reserve has raised its benchmark rate by 25 basis points to 3.75%-4%.
• The unanimous 12-0 decision marks the first US rate increase since July 2023.
• The Fed has cited elevated inflation while saying economic activity and productivity remain solid.

The Federal Reserve has raised its benchmark rate by 25 basis points after a 1,148-day pause.

The Federal Open Market Committee has lifted the target range to 3.75%-4% from 3.5%-3.75%.

The committee has voted 12-0, while inflation has remained above the Fed’s 2% target.

The central bank has said economic activity is expanding at a solid pace, with strong productivity and capital investment.

It has also said job gains have kept pace with the workforce while unemployment has changed little.

The Fed has said the latest move should support a faster return of inflation towards its 2% goal.

Bitcoin (CRYPTO:BTC) has remained above US$76,000 following the Fed’s decision, with the move reflecting broader market trading rather than a confirmed rate-driven reaction.