US Federal Reserve policymakers raised their target interest rate by a quarter point today, the first hike since late 2023, citing "elevated" uncertainty due, in part, to "geopolitical developments."
The Fed's Federal Open Market Committee (FOMC) raised the federal funds rate to 3.75-4pc, after holding the rate unchanged through five prior meetings this year.
The rate hike comes as renewed fighting in the Mideast Gulf is intensifying a global energy squeeze that began with the start of the war at the end of February. It also comes less than two months before key midterm elections expected to cost President Donald Trump control of at least one of the two houses of congress.
