Federal Reserve Raises Interest Rates to Combat Stubborn Inflation

The Federal Reserve has raised interest rates for the first time in three years. Chair Kevin Warsh announced that the rate increase will take the new range to 3.75% to 4%. This move is intended to combat what The Associated Press called 'stubbornly-high inflation.'

Fed officials believe the economy is growing at a solid pace, and productivity growth is strong.

The panel foresees another increase later this year, bringing the rate to 4.1%.