Federal Reserve raises interest rates

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The Federal Reserve voted unanimously Wednesday to raise interest rates by a quarter point, the first hike in more than three years and the first rate move under new Fed Chair Kevin Warsh. The vote by the Federal Open Market Committee (FOMC) puts the target range for the federal funds rate at 3.75%–4.00%. The widely anticipated move comes as the Fed grapples with stubborn inflation, which has been further fueled by a spike in energy prices due to the Iran war. "Inflation remains elevated," Mr. Warsh told reporters at a press conference. "Today's policy action will support a timelier return to the committee's 2% goal. This committee will deliver price stability." Mr. Warsh noted that the overall economy remains strong, with unemployment low, putting greater focus on the Fed's price stability mandate. "The labor side of the Fed's congressional remit is in good shape," he said. "Yet, for more than five years, inflation has been running above target. So, our predominant focus is