Key Facts

• The Federal Reserve increased interest rates by 0.25 percent on Wednesday.
• The new interest rate is now 4.0 percent.
• This is the first rate increase made by the Federal Reserve in some time.
• Federal Reserve Chair Kevin Warsh led the decision to raise rates.
• President Trump had called for interest rates to be reduced instead.
• Higher interest rates can make borrowing money more expensive.
• The decision signals the Fed’s focus on controlling economic factors like inflation.