India, Sept. 16 -- The US Federal Reserve raised its benchmark interest rate by 0.25 percentage point on Wednesday, September 16, taking the federal funds target range to 3.75%-4%. The move was widely expected by Wall Street.

The rate increase is the Fed's first hike since July 2023, after the central bank cut rates six times by a total of 175 basis points, or 1.75 percentage points. The Fed is now dealing with stubborn inflation, higher oil prices and a firmer labour market.

Fed Chair Kevin Warsh's comments at the Jackson Hole symposium had already pushed markets toward expecting tighter monetary policy. His remarks on August 28 were followed by a shift in expectations for higher interest rates, CNBC reported.

Fresh inflation data add...