US Federal Reserve raises key interest rate to about 3.9% to combat inflation

The Federal Reserve, the central bank of the United States, raised its key interest rate by a quarter-point to about 3.9% at its September 15-16 meeting, the first increase in three years. Minutes released Wednesday show most officials expect another hike this year to combat inflation, which remains elevated. The decision defied President Donald Trump's calls for rate cuts, though he supports Chairman Kevin Warsh. The increase comes as Americans face high costs for groceries, gas, and housing, and as affordability is a key issue in the upcoming midterm elections. Longer-term rates have also risen due to various factors.