Fed Raises Interest Rates Amid Soaring Gas Prices and Stubborn Inflation

The Federal Reserve has raised interest rates for the first time in six weeks, despite initial concerns that higher oil and gas prices would be temporary. The rate hike was unanimous, with nearly all policymakers signaling a second increase later this year could also be appropriate.

The renewed fighting in the Middle East has pushed up gas prices again, reaching $4.44 a gallon on Thursday, 38 cents higher than a month ago. Diesel prices have hit record highs at $6.40, which will push up shipping costs for many types of goods.

Federal Reserve Chairman Kevin Warsh emphasized that the economy is healthy and has continued to grow despite repeated blows from things like higher gas prices, tariffs, and higher interest rates.