Washington: The US Federal Reserve announced on Wednesday that it raised interest rates by a quarter of a percentage point to a range between 3.75% and 4% for the first time since 2023. The decision marks a significant policy move aimed at addressing ongoing economic conditions.

According to National Iraqi News Agency, the Federal Reserve explained in a statement that inflation remains elevated and the decision to raise interest rates will support its return to the target rate. The central bank also noted that uncertainty continues to be high due to factors including geopolitical developments.

The increase in interest rates reflects the Federal Reserve’s efforts to manage inflationary pressures while considering external factors that may impact economic stability. The decision underscores the complexities faced by policymakers in navigating both domestic and international economic challenges.