Fed Raises Interest Rates for First Time in Three Years

The Federal Reserve raised interest rates for the first time in three years by 25 basis points to a range of 3.75%-4.00%, as expected, lifting the Fed funds rate.

Investors had priced in the move after strong August data from the US economy, which gave new Chair Kevin Warsh little choice but to make good on his pledge to restore price stability.

The decision was seen as removing any doubt about Warsh's stewardship at the Fed being influenced by his close relationship with President Trump. However, Trump criticized the move, demanding that interest rates be lowered to 1% or less.