Fed Hikes Interest Rate to Combat Stubborn Inflation

The Federal Reserve raised its benchmark interest rate for the first time in three years to combat stubbornly high inflation. The quarter-point increase lifts the Fed's key rate to about 3.9%. This move is a signal that the central bank will continue to tighten monetary policy to reach its 2% inflation goal.

Fed Chair Kevin Warsh emphasized that while the job market remains resilient, inflation has been above the target for years. 'The plain fact is that inflation is too high and has been for too long,' he said.