The US Federal Reserve raised its key interest rate for the first time in three years

The US Federal Reserve System (FRS) has raised the interest rate on federal loan funds by 25 basis points for the first time since 2023. This was announced on September 16 on the Fed's website.

Now the rate range is 3.75–4% per annum. The decision of the American regulator coincided with the forecasts of most analysts and market participants. All 12 FOMC members voted in favor of tightening monetary policy.

The increase was preceded by a period of policy easing: in 2024, the Fed cut the rate three times, and three more rounds of cuts took place in 2025.

Tariff calculation: Canada slapped duties on key states for Republicans

Ottawa's decision may affect the midterm elections to the American Congress.

On September 13, US President Donald Trump announced that Washington would stop trading with some countries if the Federal Reserve did not lower its benchmark interest rate. He also pointed out that previous US presidents had made a "huge deficit", which led to a loss of funds on imports.