Fed raises rates and points to another hike this year - Baton Rouge Business Report

The Federal Reserve raised its benchmark interest rate by a quarter percentage point Wednesday, lifting the federal-funds target range to 3.75% to 4% in its first rate increase in three years, The Wall Street Journal reports. The unanimous decision marks a reversal from the rate cuts made last year and reflects the Fed’s continued concerns about inflation, which has made little progress toward the central bank’s 2% target since mid-2025. Rising energy and commodity prices, along with an investment surge tied to the artificial intelligence boom, have complicated the Fed’s efforts to bring inflation down.