Fed Hikes Rates to 4%, Signals Inflation Fight Not Over

The Federal Reserve raised interest rates by 25 basis points on Wednesday, lifting the federal funds target range to 3.75%-4.00%.

This decision was unanimous, with all 12 voting members supporting the move, after months of debate over whether persistent inflation justified additional tightening.

Fed Chair Kevin Warsh emphasized that policymakers remain dissatisfied with the current inflation rate and that recent inflation readings have not demonstrated a meaningful improvement in underlying trends.

Warsh's message was clear: the Fed has acted, but it has not declared victory. Inflation remains above target, economic activity has held up better than expected, and the labor market remains sufficiently strong for policymakers to focus predominantly on price stability.