What to know about US Federal Reserve’s first interest rate hike in 3 years

For the first time in more than three years, the United States Federal Reserve has raised interest rates amid mounting inflationary pressures and consumer frustration. The unanimous decision on Wednesday, supported by all 12 members of the Federal Open Market Committee (FOMC), raised rates by a quarter of a percentage point, underscoring the central bank’s commitment to lowering prices. The Fed’s benchmark rate is now set between 3.75 percent and 4 percent. “The plain fact is that inflation is too high and has been for too long,” US Federal Reserve Chair Kevin Warsh told reporters. The US Fed has a dual mandate of maximising employment and stabilising prices, maintaining a 2 percent inflation target.