Fed Hikes Interest Rates Amid Inflation Concerns

The Federal Reserve increased its policy interest rate by a quarter point to a range of 3.75 to 4 percent, a move welcomed by AEI's Michael R. Strain.

Strain commends the Fed's decision, saying 'Warsh has shown that he has steel in his spine by increasing interest rates seven weeks before the midterm elections.' He notes that central bank independence is crucial for price stability and long-term prosperity.

In related news, research shows that standardized test scores can predict college completion. AEI's Preston Cooper asserts that students with higher test scores are more adequately prepared for college, leading them to complete their studies at higher rates.