US Fed raises rate range to 3.75% to 4%
Business
The US Federal Reserve just bumped up its main interest rate range to 3.75% to 4%.
Why? The economy is still looking solid: people are spending, jobs are steady, and productivity is holding up, even though inflation is running hotter than the Fed wants.
Fed Chair Warsh stresses cooling inflation
Fed Chair Kevin Warsh says he is focused on keeping prices in check, since inflation has stuck around longer than hoped.
He pointed out that strong business investment and healthy credit flows show the economy's resilience.
The higher rates are meant to help cool off inflation, not signal any loss of confidence in the system.
In short, the Fed is trying to keep things stable and growing, even with all the global uncertainty right now.