by Emmitt Barry, Worthy News Washington D.C. Bureau Chief
(Worthy News) – The Federal Reserve raised its benchmark interest rate by a quarter point Wednesday, bringing its target range to 3.75% to 4%. The unanimous decision marks the Fed’s first rate increase in more than three years.
Inflation remains the central concern. Prices measured by the Fed’s preferred gauge were 3.7% higher in July than a year earlier, well above its 2% goal. August’s consumer price report showed gasoline rising sharply, adding to the pressure on household budgets. Fed officials’ projections point to one more rate increase this year, though that path could change as new data arrives.
The decision puts Fed Chair Kevin Warsh, appointed by President Donald Trump, at odds with the president’s calls for lower rates. For families, the immediate concern is more practical: higher rates can make credit cards and other borrowing more expensive, even as the Fed tries to bring prices under control.
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