Fed Raises Rates Amid Persistent US Inflation

The Federal Reserve raised interest rates by a quarter of a percentage point to the 3.75%-4.00% range in an effort to combat US inflation, which has been persistent despite President Trump's promises to lower prices.

The decision, made at the end of a two-day meeting, was unanimous and marks the first rate increase in three years under new Fed chief Kevin Warsh.

Warsh attributed the need for tighter monetary policy to an economy that is picking up speed, with strong economic and job growth adding to price pressures.

The rate hike was accompanied by updated quarterly economic projections showing 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year.