US Federal Reserve raises key interest rate for first time in over three years

On Wednesday, the U.S. Federal Reserve raised its main interest rate by a quarter of a percentage point, the first increase in over three years, to combat high inflation. The decision, led by Chairman Kevin Warsh, came despite pressure from President Trump to lower rates. Following the announcement, U.S. stocks rose on Thursday, recovering losses, as oil prices fell and bond yields eased. The move is part of a broader global trend of monetary tightening, with other central banks also facing inflationary pressures.