Fed Raises Interest Rates 25 Basis Points to Combat High Inflation

The Federal Reserve raised interest rates by 25 basis points to a range of 3.75%-4.00% in an effort to combat persistently high inflation.

This decision, made at their regular meeting on September 16, was unanimous and marks the first increase in interest rates in over three years.

The Fed's dual mandate is to maintain full employment and keep inflation close to 2.0%, and with unemployment rates currently between 4% and 5%, they are able to focus on reducing inflation.