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The U.S. Federal Reserve raised its benchmark interest rate by a quarter point to a range of 3.75%–4.00%, its first increase in more than three years. The unanimous 12-0 decision comes as policymakers continue to grapple with inflation running above the Fed's 2% target, worsened by a recent rebound in oil prices. Fed Chair Kevin Warsh said price stability remains the central bank's predominant focus, and policymakers signaled at least one more rate increase is likely before year-end. The move raises borrowing costs across the economy, from mortgages to business loans, and has drawn criticism from the White House.
Why it matters:
A tighter U.S. rate environment tends to strengthen the dollar and pull capital away from emerging markets — a dynamic worth watching alongside Nigeria's own FX and reserve trends.
