The Federal Reserve raised interest rates by a quarter of a percentage point to a range of 3.75 percent to 4 percent on Wednesday, a move widely expected by financial markets.

Chairman Kevin M. Warsh left open-ended how much more rates might rise to tame inflation, declining to provide specific guidance on future policy moves. He emphasized the Fed's focus on inflation and noted that 16 of 18 policymakers expect at least one more quarter-point increase by year-end, potentially pushing rates to 4 percent to 4.25 percent.

Most officials want rates to remain at or above that level throughout 2027, and projections for 2028 and beyond were raised compared to three months ago. Patrick Harker, former president of the Federal Reserve Bank of Philadelphia, expects two additional moves totaling 0.75 percentage point, though he anticipates the Fed will skip a hike at its next meeting in late October due to election 'optics.'

Warsh described the latest move as removing 'a dose of accommodation,' signaling a more hawkish stance than expected and suggesting current policy settings are not yet weighing meaningfully on the economy.