Fed hikes rates again after long pause to curb persistent inflation

Fed raises the federal funds rate by 0.25 percentage points to 3.75-4% in a unanimous vote, the first hike in more than three years, citing inflation that remains above target. Officials expect further increases to about 4-4.25% by year‑end and 4.25-4.5% next year, with cuts not expected until 2028-2029. The higher rates will lift borrowing costs for loans, mortgages, and credit cards, though could boost savers; banks lifted their prime rates in response, amid political backlash and concerns about higher debt for Americans.