PREVIEW

US Federal Reserve Raises Interest Rates for First Time in Three Years. The Federal Reserve raised US interest rates to 3.75% to 4%, despite President Donald Trump's demands for cuts. The unanimous decision aims to control inflation, which Fed Chair Kevin Warsh said remains excessively high. Warsh said prices have exceeded the central bank's two-percent target for more than five years. Higher rates make mortgages, credit cards, and loans more expensive, while potentially improving returns for savers. Major US banks immediately raised prime lending rates, increasing borrowing costs for personal loans and credit cards. Fixed-rate mortgage holders are generally protected, but new buyers and people refinancing could face higher monthly payments. Most Fed policymakers expect another increase this year, potentially pushing rates toward 4.25% before future cuts. The decision comes as rising energy prices and inflation continue creating affordability concerns for American households.
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