The Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75%-4% on Wednesday, its first increase since 2023, and sees raising rates one more time this year to tame sticky inflation as renewed tensions in the Middle East drive oil prices higher and raise concerns about broadening price pressures.

The Fed typically raises rates to tame inflation by making borrowing more expensive, which can lead to less demand and eventually lower prices. Raising the target range also means consumers will likely see higher interest rates on things like credit cards and personal loans.

"Inflation remains elevated. Today's policy action will support a timelier return to the Committee's 2% goal," policymakers said in a statement released alongside the decision. "The Committee will deliver price stability."

Officials noted in their statement that uncertainty remains elevated in part due to geopolitical developments, but that domestic spending has been resilient.

sources: finance.yahoo.com & usatoday.com