Fed Hikes Rates, Signals Further Tightening Amid Persistent Inflation

The Federal Reserve raised interest rates on Wednesday by a quarter of a percentage point to the 3.75%-4.00% range, marking the first policy shift under new Fed chief Kevin Warsh.

This decision effectively acknowledges the Trump administration's inability to control inflation, which remains high due to various factors including global import tariffs and an energy shock following the U.S.-Israeli war with Iran.

New policy projections show 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, with only two seeing rates remaining stable from here.