Key Points The Fed recently raised interest rates to fight rising inflation. Higher rates often prompt consumers to save rather than spend. 10 stocks we like better than Costco Wholesale › The Federal Reserve recently did something it hasn't done for three years: It raised interest rates. In his first big policy shift as Fed chair, Kevin Warsh, who took the post in May, said, "inflation is too high and has been for too long." The move, a quarter-point increase to the range of 3.75% to 4%, followed Warsh's decision to maintain rates at the current level during June and July policy meetings.
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