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

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.Recommended Stories list of 3 itemslist 1 of 3Oil soars to $109, pushing up chances of US interest rate increaselist 2 of 3Benchmark US government bond yield hits 19-year peak as oil prices surgelist 3 of 3US Fed raises interest rates for first time in three yearsend of listThe 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 o...