The Federal Reserve raised interest rates by a quarter of a percentage point on Wednesday, the first increase in more than three years and a significant step by Kevin Warsh, the central bank’s chair, to combat elevated inflation. The decision, which lifts rates to a new range of 3.75% to 4%, was supported by all 12 members of the Federal Open Market Committee. “The plain fact is that inflation is too high and has been for too long,” Warsh said at a news conference after the decision was announced. He added that the U.S. economy remained strong and unemployment was low, justifying the Fed removing what he described as a “dose of accommodation.
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