US Fed raises interest rates as inflation weighs on economy

The United States Federal Reserve announced a 25 basis point increase in interest rates, raising the rate to 3.75% to 4% in response to high inflation, particularly due to the US-Iran war. This marks the first hike in over three years, despite repeated calls from President Donald Trump to lower rates. Fed officials expect one more rate increase this year as consumer prices rose by 0.4% in August.