New Delhi, Sept. 17 -- The US Federal Reserve raised its benchmark interest rate Wednesday, making it the first such hike since 2023. The rate hike announced by Trump-appointed Fed Chairman Kevin Warsh was widely expected as a move to combat stubbornly high inflation that has remained above its 2% target for more than five years.

Warsh stated that the economy has shown signs of gathering speed since the central bank decided to keep rates unchanged in late July. Inflation has also remained stubbornly above the Fed's 2% target, and he noted there is little sign it is cooling, according to The Associated Press.

Warsh also noted that other central banks are hiking interest rates in response to global turmoil and higher gas prices.

US Presi...