Fed Raises Interest Rates by Quarter Point

WASHINGTON (AURN News) — The Federal Reserve raised interest rates for the first time in more than three years, a move that could make borrowing more expensive for consumers already facing elevated prices.

The Fed unanimously approved a quarter-point increase, lifting its benchmark interest rate to a range of 3.75% to 4%.

Fed officials said inflation remains elevated and economic activity continues to expand at a solid pace.

The Fed also signaled that additional rate increases could be considered later this year if inflation remains persistent.

For consumers, borrowing could become more expensive. Credit card rates may climb quickly, while car loans, personal loans and some mortgage rates could also remain high.

People with savings accounts may earn slightly better returns.

The decision also runs counter to President Donald Trump’s repeated calls for lower interest rates.

Fed Chair Kevin Warsh, whom Trump appointed, said the central bank remains focused on bringing inflation back toward its 2% goal, even as the midterm elections approach.

Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @ebonymcmorris & @aurnonline.

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