The Federal Reserve approved its first interest rate hike in more than three years on Wednesday, moving the bank’s benchmark target 25 basis points to 3.75–4 percent.
The central bank’s Federal Open Market Committee voted 12–0 to raise its benchmark interest rate for the first time since 2023. Speaking after the decision, Federal Reserve Chairman Kevin Warsh said “inflation is too high and has been for too long.”
Despite concerns regarding inflation, Warsh said the decision “comes at a time when the American economy appears to be strengthening.”
Markets reacted negatively to the news, with the Dow Jones Industrial Average closing 631 points lower.
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