New Delhi, Sept. 16 -- The US Federal Reserve raised interest rates by a quarter percentage point and penciled in another rate hike later this year, steps aimed at containing inflation that will test Chairman Kevin Warsh's relationship with President Donald Trump.

"Today's policy action will support a timelier return to the committee's 2% goal," officials said in a statement following the move Wednesday, referring to inflation.

It was the US Fed's first rate hike since July 2023.

The Federal Open Market Committee, or FOMC, voted unanimously to increase the benchmark federal funds rate to a range of 3.75% to 4%. Stocks rose and US Treasuries held their gains after the decision.

Heading into the decision, investors saw greater than a 90...