Warsh explains: Why the Fed raised rates in September after holding steady in July

BlockBeats news, September 17: The Federal Reserve raised interest rates as expected in September, after the central bank kept rates unchanged at its July meeting. Federal Reserve Chairman Warsh said that three things changed between the two meetings.

He said that data released in recent weeks showed the U.S. economy performing strongly, especially the labor market. At the same time, inflation remained at a high level throughout the summer, noticeably above the Federal Reserve's 2% year-over-year inflation target.

Finally, he said that geopolitical factors also prompted the Federal Reserve to change its assessment of the economic outlook, though he did not directly mention the U.S.-Iran war in the Middle East. Warsh said: "All three of these things contributed to the firm and unanimous decision we made today." (Jinshi)