The Federal Reserve raised its benchmark interest rate by a quarter percentage point on Wednesday, to a range of 3.75% to 4%. The 12–0 vote was the first hike in three years.
Officials said the economy is still growing at a solid pace, jobs are keeping up with the workforce, and inflation remains too high. They said the move is meant to bring prices back toward the Fed’s 2% goal sooner.
Sixteen of 18 officials expect at least one more hike this year. Four of them see two more. Chair Kevin Warsh did not submit a rate forecast.
