What to know about US Federal Reserve’s first interest rate hike in 3 years

The unanimous decision underscores the central bank’s commitment to lowering prices that have remained stubbornly high.

After deciding to hike interest rates for the first time in three years, US Federal Reserve Chair Kevin Warsh told reporters Wednesday that 'inflation is too high and has been for too long' [Saul Loeb/AFP]

For the first time in more than three years, the United States Federal Reserve has raised interest rates amid mounting inflationary pressures and consumer frustration.

The unanimous decision on Wednesday, supported by all 12 members of the Federal Open Market Committee (FOMC), raised rates by a quarter of a percentage point, underscoring the central bank’s commitment to lowering prices.

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The Fed’s benchmark rate is now set between 3.75 percent and 4 percent.

“The plain fact is that inflation is too high and has been for too long,” US Federal Reserve Chair Kevin Warsh told reporters.

Here’s what you need to know:

Why did this happen?

The US Fed has a dual mandate of maximising employment and stabilising prices, maintaining a 2 percent inflation target.

After soaring for years during the COVID-19 pandemic, inflation had finally started to taper closer to target. But over the last several years it has been on the upswing once again and hit 3.4 percent last month.

That comes on the back of tariffs unleashed by President Donald Trump on most trading partners, as well as by the US war in Iran and increased spending on artificial intelligence.

The Fed said Wednesday’s rate increase “will support a timelier return to the Committee’s 2 percent goal”.

What impact will this have?

The rate hike has a litany of possible economic and political ramifications.

The increase will hit any US consumer who is paying interest on credit card debt. It will also make it even more expensive for those who hope to borrow for homes, automobiles and other expensive purchases.

When the Fed raises the cost of borrowing it also reduces demand for items, which could impact US businesses and risk the health of the economy.

The rate increase also comes at an inopportune time for Trump and the Republican Party, less than 50 days before the November midterm elections that will determine whether Republicans or Democrats control the US Congress.

US consumers have faced years of increasingly higher prices, most recently at the gas pump with the average price for a gallon of petrol hitting $4.36 ($1.15 per litre), up 14 cents in the past week and up from $3.18 a year ago, according to the American Automobile Association (AAA). Voters could opt to vent their frustrations at the ballot box, offering Democrats a chance to seize one – or even both – chambers.

How soon will this translate to higher prices?

US banks looking to borrow money from the Fed will immediately start paying the higher lending rate.

Consumers with credit cards, which generally have variable interest rates that closely follow the prime rate that banks charge their customers, could see their minimum payments increase within a month, as could home owners with variable interest rate mortgages.

The decision is a blow for Trump, who has frequently clashed with the Fed over lowering borrowing costs. Trump mounted a pressure campaign against the Fed’s previous chairman, Jerome Powell, over his resistance to doing so.

When Powell’s term ended earlier this year, Trump handpicked his successor, Kevin Warsh, who was placed in the job in May.

At the time, Trump said he would choose someone who supported lower interest rates.

On Sunday during a trip to Ireland, Trump said the US “should be paying the lowest interest rate in the world” after previously threatening to cut off a large section of US trade if rates did not decrease.

On Wednesday, Warsh was asked what his message for Trump was about the rate hike.

“I’ve got nothing for you on a discussion with the president,” he replied.

Nearly three hours after the interest rate decision was announced, Trump lashed out.

“Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR,” he wrote on his Truth Social platform. “We are “carrying” almost every country in the World, and that cannot go on any longer. LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”

Fed members indicated on Wednesday that there would likely be another quarter-point increase this year and those rates would remain unchanged through 2027.

这一一致通过的决定凸显了央行降低居高不下的物价的决心。

在决定三年来首次加息后，美联储主席凯文·沃什周三告诉记者，“通货膨胀过高，而且持续时间过长”[Saul Loeb/AFP]

由于通胀压力不断增加和消费者不满情绪高涨，美国联邦储备委员会三年多来首次提高利率。

周三，联邦公开市场委员会 (FOMC) 12 名成员一致通过决议，将利率上调 0.25 个百分点，凸显了央行降低物价的决心。

列表 1/3：原油价格飙升至每桶 109 美元，推高美国加息可能性

（共3条，此为第2条）受油价飙升影响，美国基准国债收益率创19年新高

列表 3/3：美联储三年来首次加息

美联储的基准利率目前设定在3.75%至4%之间。

“显而易见的事实是，通货膨胀率过高，而且持续时间过长，”美联储主席凯文·沃什告诉记者。

以下是您需要了解的内容：

为什么会发生这种事？

美国联邦储备委员会的双重使命是最大限度地提高就业率和稳定物价，并维持2%的通胀目标。

在新冠疫情期间通胀飙升数年后，通胀率终于开始回落至目标水平附近。但近几年来，通胀率再次攀升，上个月达到3.4%。

这是由于唐纳德·特朗普总统对大多数贸易伙伴征收关税，以及美国在伊朗发动战争和增加对人工智能的投入所致。

美联储周三表示，此次加息“将有助于更快地恢复到委员会设定的2%的目标”。

这将产生什么影响？

此次加息可能会带来一系列经济和政治影响。

此次利率上涨将对所有支付信用卡利息的美国消费者造成冲击。对于那些希望贷款购买房屋、汽车和其他大宗商品的人来说，成本也会更高。

美联储提高借贷成本也会降低对商品的需求，这可能会影响美国企业并危及经济健康。

对于特朗普和共和党来说，此次加息的时机也十分不巧，距离 11 月的中期选举不到 50 天，此次选举将决定共和党还是民主党控制美国国会。

多年来，美国消费者一直面临着物价上涨的困境，最近汽油价格更是飙升。据美国汽车协会（AAA）的数据显示，汽油平均价格已达到每加仑4.36美元（每升1.15美元），较上周上涨了14美分，也高于一年前的3.18美元。选民们可能会选择在投票中表达他们的不满，这或许会给民主党一个机会，让他们有机会掌控参众两院，甚至两院都获得控制权。

这多久会转化为更高的价格？

希望从美联储借款的美国银行将立即开始支付更高的贷款利率。

持有信用卡的消费者（信用卡利率通常浮动，与银行向客户收取的基准利率密切相关）可能会在一个月内发现最低还款额增加，持有浮动利率抵押贷款的房主也可能面临同样的情况。

这一决定对特朗普来说无疑是一次打击，他曾多次在降低借贷成本问题上与美联储发生冲突。此前，特朗普曾就美联储前主席杰罗姆·鲍威尔拒绝降息一事向其施压。

今年早些时候鲍威尔的任期结束时，特朗普亲自挑选了他的继任者凯文·沃什，沃什于5月份上任。

当时，特朗普表示他会选择一位支持降低利率的人选。

周日，特朗普在访问爱尔兰期间表示，美国“应该支付世界上最低的利率”，此前他曾威胁说，如果利率不下降，美国将切断很大一部分贸易。

周三，有人问沃什，他对特朗普加息一事有什么想说的。

“关于与总统的讨论，我没有什么可以和你分享的，”他回答说。

利率决定宣布近三个小时后，特朗普猛烈抨击。

“美国的利率应该在1%甚至更低，因为我们是世界上信用最好的国家——遥遥领先，”他在自己的Truth Social平台上写道。“我们几乎在为世界上所有国家提供贷款，这种情况不能再继续下去了。立即降低美国的利率！”

美联储成员周三表示，今年可能会再次加息25个基点，并且这些利率将维持不变直至2027年。