The Federal Reserve raised interest rates by a quarter point, with Kevin Warsh backing the unanimous move. The decision signalled more tightening ahead as inflation stayed elevated and markets watched for Warsh's next steps.

In a set of quarterly projections, the Fed also signaled that its rate-setting committee expects to hike rates a second time later this year to 4.1%.

Federal Reserve raises key interest rate for first time in three years, amid rising inflation and affordability concerns ahead of elections.

Federal Reserve raises key interest rate for first time in three years, amid rising inflation and affordability concerns ahead of elections.

In an attempt to address the persistently high inflation in the world's largest economy, the US Federal Reserve increased interest rates by 25 basis points.