US interest rates raised for first time in three years
Rates were hiked in a unanimous decision despite fierce opposition from President Donald Trump, who had called for a cut.
Watch: Why has the Federal Reserve raised interest rates?
US interest rates have been raised for the first time in more than three years and could be increased further in a bid to slow rising prices.
Fed Chair Kevin Warsh said the move was because "inflation is too high and has been for too long", adding that it was a "sober" and "responsible decision".
After the announcement, Trump expressed support for Warsh but said the Fed board, which votes on rate decisions, was "hostile".
Higher interest rates make borrowing more expensive for people wanting to secure loans, mortgages, and credit cards, but can lead to better returns on savings.