Fed Hikes Rates Amid Rising Gas Prices, Strong Economy

The Federal Reserve has raised interest rates for the first time in six weeks, citing rising gas prices and a resilient economy. The decision was unanimous, with nearly all policymakers agreeing that a second increase later this year is likely.

Gas prices have been steadily increasing, reaching $4.44 a gallon on Thursday, 38 cents higher than a month ago. The Fed believes the economy can withstand these price shocks and continue to grow.

Fed Chairman Kevin Warsh emphasized that the economy is healthy, with new hiring, private-sector earnings, and business capital investment all improving in recent months.