Fed Takes Aim at Inflation with First Rate Hike in Three Years

The Federal Reserve's decision to raise interest rates for the first time in three years marks a new front in its fight against inflation.

Fed Chair Kevin Warsh framed the unanimous decision as necessary to bring down inflation in an otherwise healthy economy with low unemployment, stable job creation, and continued growth.

'Our predominant focus is on the price-stability side of our mandate. The plain fact is that inflation is too high and has been for too long,' Warsh said.

The decision was a 0.25% increase, but economists believe it will not be enough to tame the five-year run of high inflation, which climbed to 3.4% year-over-year in August.