Interest rate hike a 'reassuring' sign Fed is acting independently, economist says

The Federal Reserve has raised interest rates by a quarter of a point, its first hike in three years, to between 3.75 and 4.00 percent. This move, widely anticipated, aims to combat elevated inflation. According to PBS NewsHour, it is the first major move by Fed Chair Kevin Warsh.

The rate hike has had an impact on the markets, with Wall Street stocks falling and the US dollar advancing, as reported by RTHK News - Finance. The S&P 500 finished lower, down 0.5 percent. The market believes that the inflation fight is not a one-and-done rate-hike kind of thing, with investors focused on the possibility of additional tightening.

US President Donald Trump criticized the central bank's move on social media, calling for lower interest rates, as reported by Investing.com. Meanwhile, economist Julia Coronado of MacroPolicy Perspectives noted that the interest rate hike is a reassuring sign that the Fed is acting independently. Fed Chair Kevin Warsh stated that the move would not immediately bring down individual prices.

Brief written by urgent.news from PBS NewsHour, RTHK News - Finance, Investing.com, Business Insider, FXStreet — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.