Federal Reserve chairman Kevin Warsh announced Wednesday the Fed would raise its benchmark interest rate by a quarter point to fight inflation.
The rate hike, the first since 2023, increases the rate to about 3.9% and that could raise the cost of borrowing for mortgages, credit cards and other consumer loans.
The ongoing war in Iran has sent oil prices past the $100 per barrel mark, increasing the cost of fuel at the pump and reigniting fears of inflation.
President Donald Trump criticized the Fed’s decision, but also said the higher oil price is “a very inexpensive price to pay” to prevent Iran from getting a nuclear weapon.
