The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75%-4.00% target range, its first increase in more than three years, while officials' median projection indicated one further increase this year. A survey conducted by the Richmond Fed, Atlanta Fed and Duke University's Fuqua School of Business found chief financial officers expected to raise prices by an average 5.3% this year and 4.5% next year, both above prior survey readings. Monetary policy became the most frequently cited concern, with around 20% of firms ranking it first, as businesses faced the prospect of higher borrowing costs. Overall economic optimism remained strong, but smaller and financially constrained firms reported greater difficulty funding expansion and covering costs. Boston Federal Reserve President Susan Collins cited stronger labor conditions and upside inflation risks, while European Central Bank's Philip R. Lane warned energy costs could prolong price pressures.