The Federal Reserve raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly-high inflation and the central bank also signaled that another rate hike could occur later this year.

Stock prices often react to the Fed's rate actions, but they are only one of many factors affecting the investing climate and stock prices. AI investments and oil-price-fueled inflation seem to be the most motivating factors for equity markets these days.

The Federal Reserve is widely expected to hike interest rates Wednesday as inflation stays stubbornly above the central bank's target and Treasury yields hover around 5%.

The Federal Reserve hiked interest rates. Now, if you want to finance a tech upgrade, you'll pay more in interest.

The Federal Reserve voted to raise interest rates by 25 basis points on Wednesday to a range of 3.75%-4% amid persistently high inflation. The decision was unanimous.

After hiking interest rates by a quarter of a percentage point on Wednesday, policymakers see one more increase in 2026. Officials estimate their target range for the federal-funds rate will be 4.1% at the end of 2026,

Here, we will bring you the latest news on the Fed’s decision, explain what it means, and provide analysis.Markets expect the FOMC to hike its influential interest rate at the close of today’s meeting.

The stock market was higher on Wednesday as investors focused on the Federal Reserve's interest rate decision. S&P 500 (SP500) +0.3%, the Dow (DJI) +0.1%, and the Nasdaq Composite (COMP:IND) +0.5%. The Federal Open Market Committee is widely expected to raise its benchmark rate to 3.