Fed delivers first rate hike since July 2023, lifts benchmark to 4%

According to Mettis Global, the US Federal Reserve raised its benchmark rate by 25 basis points on Wednesday, taking it to 4% from 3.75%. This is the first hike the central bank has made since July 2023, and it came against a backdrop of stubborn price pressures and costly crude.

The decision was reached during a two-day Federal Open Market Committee meeting, even though US President Donald Trump had publicly pressed for cheaper borrowing. Trump has also warned that he could halt trade with nations that run surpluses against the United States unless the Fed brings rates down.

The report does not name any listed company or sector in Pakistan, so its direct link to the PSX is through global rate conditions. Investors following the exchange can treat it as a reference point for how major central banks are setting borrowing costs.