Federal Reserve Raises Interest Rates for First Time in Three Years
Source Summary
The Federal Reserve raised interest rates for the first time in three years under its new chief, who took office in late May after being selected by Trump. The Fed stated the rate increase aims to help bring inflation back to its two percent target. Economists note that these inflationary pressures are not affecting Canada in the same way and do not create equivalent pressure on the Bank of Canada.
Why it matters
The Federal Reserve's first rate increase in three years signals a shift in monetary policy direction and reflects the central bank's effort to control inflation at its stated target.
