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.
Fed Chair Kevin Warsh gave remarks at the annual Jackson Hole Economic Policy Symposium on Friday morning. The speech seemed to signal that the Fed will have to raise rates.