Federal Reserve Raises Interest Rates in First Hike in More Than Three Years– slaynews.com
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EXCERPT:
The Federal Reserve raised interest rates Wednesday for the first time in more than three years, reversing one of last year’s cuts as officials moved to contain stubborn inflation.
In a unanimous 12-0 decision, the Federal Open Market Committee increased its benchmark federal funds rate by a quarter percentage point, bringing the target range to 3.75% to 4%.
The decision marks the first major interest rate move under newly installed Federal Reserve Chairman Kevin Warsh.
It immediately puts President Donald Trump’s handpicked central bank chief at odds with the president’s repeated calls for lower borrowing costs.
Fed Reverses Course as Inflation Remains Elevated
The quarter-point increase effectively erases one of the three interest rate cuts approved last year.
Federal Reserve officials pointed directly to persistent inflation in explaining the reversal.
“Inflation remains elevated,” the Federal Open Market Committee said in its statement.