Fed Raises Interest Rates to Combat Stubborn Inflation

The Federal Reserve has raised interest rates for the first time in over three years to combat stubborn inflation across the country. The benchmark interest rate is now in a range of 3.75% to 4%. Financial markets had anticipated this move, as policymakers aim to curb rising prices.

Conflict with Iran threatens to put further upward pressure on inflation, adding to the Fed's concerns. Mark Teed, senior vice president of investments at Raymond James & Associates, believes that financial markets will respond negatively to this decision.