Fed Unanimously Approves Rate Hike Amid Persistent Inflation Concerns

The Federal Reserve voted unanimously to raise its benchmark federal funds rate by 0.25% on Wednesday, citing persistent inflation as the reason for the hike.

The new rate of 3.75% to 4% will trickle down to consumers, impacting mortgages, credit cards, and big-ticket spending.

U.S. inflation has been above the Fed's target annual rate of 2% for nearly 5 1/2 years, driven by factors such as petroleum industry price shocks and new international trade tariffs.

Fed Chairman Kevin Warsh stated that 'the plain fact is that inflation is too high and has been for too long' and that the rate hike was aimed at addressing this issue.