The US Federal Reserve raised interest rates in September 2026 for the first time since which year, citing inflation driven by the Iran war?

Explanation: The US Federal Reserve raised interest rates by 25 basis points in September 2026, its first hike since 2023, citing stubbornly high inflation driven substantially by the energy shock from the Iran war and the closure of the Strait of Hormuz. Higher US rates typically strengthen the dollar and tighten global financial conditions, raising borrowing costs for emerging market economies and adding pressure to countries like Pakistan that rely on external financing and face rising import bills for energy.