Fed Hikes Rate in Bid to Tame Stubborn Inflation

The US Federal Reserve raised its benchmark interest rate by a quarter of a percentage point to 3.75-4% on Wednesday, marking the first increase since 2023.

This move was widely anticipated by markets and was backed by all 12 members of the Federal Open Market Committee, according to Reuters.

Fed Chairman Kevin Warsh cited stubborn inflation as the reason for the rate hike, stating that 'the plain fact is that inflation is too high and has been for too long.'

Warsh emphasized the Fed's commitment to returning to its 2% target, saying that today's policy action will support a timelier return to this goal.