Fed Raises Rates for First Time in Three Years as Inflation Persists

The Federal Reserve's FOMC voted 12-0 to raise the federal funds rate a quarter point to 3.75–4.00%, its first hike since 2023, after August payrolls surged and core CPI came in hot amid tariff- and oil-driven price pressure. Chair Kevin Warsh said inflation had been 'too high ... for too long,' and the dot plot showed most officials expecting further hikes.