Federal Reserve Raises Interest Rates to Combat Inflation

The Federal Reserve raised interest rates for the first time since July 2023 to combat inflation caused by the Iran war. The move marked a quarter of a percentage point increase, putting interest rates between 3.75% and 4%. Fed Chair Kevin Warsh stated that 'the plain fact is that inflation is too high and has been for too long.'

Global oil prices have risen to a four-month high, with the average price for a gallon of gasoline exceeding $4.30, according to AAA. The U.S. economy has shown signs of strain, including a bond selloff that's pushing up borrowing costs for credit cards and mortgages.

The move was unanimous among the 12-member policymaking board, which includes Trump-appointed Fed Chair Kevin Warsh. President Donald Trump criticized the decision, repeating his call for lower interest rates.