Fed Raises Interest Rate Amid Persistent Inflation

The US Federal Reserve raised its interest rate by 25 basis points to 3.75-4% for the first time since July 2023, aiming to combat persistent inflation.

The decision was made at a meeting of the Federal Open Market Committee (FOMC) held on September 15-16, with all 12 members voting in favor.

Fed Chair Kevin Warsh emphasized that 'inflation remains elevated' and that the rate hike will help achieve the committee's 2% inflation goal.

Warsh also stated that a robust economy can handle a quarter-point hike and that the Fed is not signaling an aggressive rate-hiking cycle.