Federal Reserve raises interest rates by 0.25 percentage points at September FOMC

The Federal Reserve, led by Chair Kevin Warsh, raised the federal funds rate target range by 0.25 percentage points to 3.75-4.00% in a unanimous 12-0 vote. The committee noted that economic activity and the labor market have strengthened since the last meeting, though inflation remains persistently high. The Fed will continue to maintain ample reserves in the banking system and will make future policy decisions on a meeting-by-meeting basis.