Federal Reserve Hikes Interest Rate Amid Rising Inflation Concerns

The Federal Reserve has raised its benchmark interest rate by 25 basis points to 3.75-4 percent, marking its first increase in over three years.

According to Federal Reserve Chairman Kevin Warsh, 'inflation is too high and has been for too long.'

The decision was made despite concerns about inflation, with Warsh noting that the rate hike comes at a time when the American economy appears to be strengthening.

However, markets reacted negatively to the news, with the Dow Jones Industrial Average closing 631 points lower.