Fed Chair Kevin Warsh thinks Fed officials have tipped their hand too much in the past about their future plans for interest rates. But he hasn’t been able to keep everybody else quiet.
The quarter-point increase lifts the Fed’s key rate to about 3.9% and could result in higher borrowing costs for mortgages, auto loans, and credit cards.
The Fed is expected to raise interest rates at its next meeting, and it won’t be alone. The ECB has already raised rates, and Japan is expected to follow suit.