Warsh's Fed Targets 2% Inflation with Rate Hike

The Federal Reserve has raised interest rates to a range of 3.75 to 4 percent, marking its first increase in three years under new Chairman Kevin Warsh.

Warsh, appointed by President Donald Trump, is seen as a more hawkish leader than his predecessor, and his first move has been welcomed by many economists and financial professionals.

Chief economist Gregory Daco of EY Parthenon believes that with slightly higher interest rates, the Fed can shrink the rate of inflation to 2 percent by 2029.

While this may seem ambitious, some experts are now inclined to believe that the Fed is serious about taming inflation, after years of struggling to meet its target.