Pakistan, Sept. 17 -- The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4% on Wednesday. The move marked the first rate increase in three years. It also represented the first policy shift under Fed Chair Kevin Warsh, who took office in May. Policymakers cited persistent inflation pressures and stronger economic activity behind the decision.

Read More: US Federal Reserve keeps rates steady amid inflation concern

The Fed's latest projections indicate further tightening could follow this year. Sixteen of 18 policymakers expect at least one additional quarter-point increase by year-end. The projections put the policy rate at 4%-4.25% by the end of 2026. The same range is expected to remain through the end of...