Federal Reserve Hikes Interest Rates for First Time in Three Years

The Federal Reserve has raised interest rates for the first time in three years. Chair Kevin Warsh announced that the key rate will now range from 3.75% to 4%, a quarter of a percentage point increase.

This decision was supported by all 12 members of the Federal Open Market Committee, who believe the economy is growing at a solid pace and productivity growth is strong.

The move aims to combat stubbornly-high inflation. The Fed officials foresee another interest rate hike later this year, which would bring the key rate to 4.1%.