Fed Raises Rates by 0.25% on September 16 Amid Inflation Focus

The U.S. Federal Reserve raised its benchmark interest rate by 0.25 percentage points to a range of 3.75%-4.00% on September 16 (local time), marking the first rate increase in over three years since July 2023. The Fed stated that this decision aims to accelerate progress toward its 2% inflation target. Following the announcement, the Dow Jones Industrial Average fell 1.2% to 51,461.90, the S&P 500 dropped 0.4% to 7,551.81, and the Nasdaq Composite declined by less than 0.1% to 25,978.42, according to AP. Gold prices fell 1.2% to $4,240.10 per ounce (approximately KRW 5.81 million) as of 5:10 PM KST on September 17, reported by Reuters. Block later noted that Bitcoin traded between $75,000 and $76,500 (approximately KRW 13 million to KRW 14.8 million) shortly after the rate decision, with 16 of 18 Federal Open Market Committee members anticipating at least one more rate hike this year.