Washington: (RightNow) The US Federal Reserve has increased the interest rate by 0.25% to address inflation concerns. This move raises the rate from 3.75% to 4%.

This announcement comes amid rising oil prices due to tensions between the US and Iran, impacting the US economy.

The Federal Reserve stated that the economy is strong, but geopolitical conditions remain uncertain. Domestic spending is also stable.

The Federal Reserve emphasizes that this decision is crucial to bringing inflation down to the 2% target, aiding in price stability.

It is noteworthy that rising fuel prices have exacerbated inflation in the US, with gasoline prices reaching historic levels.