Fed Raises Interest Rates Amid Persistent Inflation Concerns

The Federal Reserve's (Fed) decision to raise interest rates has been anticipated for some time due to increasing inflation concerns.

The US inflation rate has consistently exceeded the 2% target for over five years, and this trend is expected to continue with further rate hikes planned by the Fed.

In a post-policy news conference, Fed member Mr. Warsh acknowledged that the central bank had removed a 'dose of accommodation', but stopped short of stating whether the current interest rate was near neutral.

The neutral rate is the real interest rate at which monetary policy neither stimulates nor restrains economic activity.