Washington DC, Sept. 16 -- The US Federal Reserve has raised its benchmark interest rate by 25 basis points, marking its first rate increase since 2023, as policymakers respond to persistent inflationary pressures and changing economic conditions.

The Federal Open Market Committee (FOMC) increased the target range for the federal funds rate by a quarter percentage point to 3.75-4 per cent. The decision was approved unanimously by a 12-0 vote.

The rate increase was broadly in line with market expectations, with traders assigning an over 90 per cent probability to a 25-basis-point hike ahead of the decision.

"The Committee decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent, in suppo...