Fed Hikes Rates Amid Persistent Inflation Concerns

The Federal Reserve raised interest rates by a quarter percentage point to between 3.75 and 4 percent on Wednesday, citing a need for 'timelier' action to combat inflation.

This decision marked the first policy shift under new Fed chief Kevin Warsh, who took office in late May after being selected by President Donald Trump with an expectation that he would cut rates.

The rate hike was unanimous, and 16 of 18 policymakers anticipate at least one more quarter-percentage-point increase by the end of this year.

Warsh did not submit a rate projection. The dollar rose against the euro after the Fed's announcement, while US Treasury bond yields held largely steady.