Fed Hikes Interest Rates Amid Soaring Gas Prices and Strong Economy

The Federal Reserve has increased interest rates for the first time in six weeks, with nearly all policymakers signaling that a second increase later this year would be likely.

The decision comes as gas prices have surged due to renewed fighting in the Middle East, reaching $4.44 a gallon on Thursday, 38 cents higher than a month ago.

Fed Chairman Kevin Warsh emphasized that the economy is healthy and has continued to grow despite repeated blows from things like higher gas prices, tariffs, and higher interest rates.