The U.S. Federal Reserve (Fed) has increased its benchmark interest rate by 0.25 percentage points to a range of 3.75–4 percent in an effort to curb high inflation.

Operativ Media reports that this marks the first time the Fed has raised the interest rate since 2023.

“Today’s decision will help return inflation to the 2 percent target more quickly,” the institution stated.

According to forecasts released by the Fed, the interest rate could be raised one more time before the end of this year, reaching approximately 4.1 percent.