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The Independent UK
The Independent UK
National
Christopher Rugaber

Why the Federal Reserve is lifting rates now, and what it means

Federal Reserve Warsh - (Copyright 2026 The Associated Press. All rights reserved.)

About six weeks ago, Federal Reserve Chairman Kevin Warsh announced that a divided central bank was keeping its key interest rate unchanged.

But on Wednesday, the Fed's rate-setting committee unanimously agreed to a rate hike, and nearly all policymakers signaled that a second increase later this year would likely be appropriate.

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