In line with expectations, the US Federal Reserve has raised interest rates by 25 basis points, lifting the target range of the federal funds rate to 3.75 to 4 per cent. The rationale behind the decision, which all committee members supported, is straightforward — inflation remains uncomfortably high. As Fed chair Kevin Warsh also acknowledged, “The plain fact is that inflation is too high and has been for too long.”

In August, US consumer prices rose 0.4 per cent on a seasonally adjusted basis (keeping the 12-month rate at 3.4 per cent), according to the US Bureau........

© Indian Express