The Federal Reserve on Wednesday raised interest rates by 25 basis points – or 0.25%.

The Federal Open Market Committee (FOMC) voted 12-0 to increase the benchmark rate to 3.75%.

This is the first rate hike since 2023.

The rate hike comes just weeks before the midterm elections.

President Trump has repeatedly demanded interest rate cuts and threatened to halt trade if the Fed didn’t reduce the key rates.

CNBC reported:

The Federal Reserve on Wednesday approved its first interest rate hike in more than three years and indicated another to come, as part of an effort aimed at combating inflation brought on by spiraling oil prices and other factors.

In a move that markets widely anticipated, the central bank’s Federal Open Market Committee voted 12-0 to increase its key interest rate by a quarter percentage point, or 25 basis points. The move brought the overnight funds rate to a target range of 3.75%-4%.

“Inflation remains elevated,” the committee said in its brief post-meeting statement. “Today’s policy action will support a timelier return to the Committee’s 2 percent goal. The Committee will deliver price stability.“

Despite a raft of conflicting recent statements from policymakers, markets had priced in a better than 90% chance that the FOMC would approve the increase, though there was chatter about the possibility of multiple dissents.

Fed Chairman Kevin Warsh will hold a live presser at 2:30 pm ET.

WATCH:

President Trump responded to the rate hike.

Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR. Our Country is BOOMING with new Investment! If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year. The word “Deficit” is nothing more than a fancy word for LOSS. 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! President DONALD J. TRUMP