The US Federal Reserve under Chairman Kevin Warsh raised the benchmark interest rate by 0.25% to 3.75-4% in September—the first increase in 3 years—citing three factors: economic strength particularly in labor markets, persistent inflation above the Fed's 2% target, and geopolitical tensions including Middle East conflicts and oil price spikes above $100/barrel. Warsh emphasized the decision was unanimous and independent, deflecting questions about discussions with President Trump, though Trump publicly expressed disappointment and called for lower rates. The Fed's December projections suggest one more rate hike likely this year, with debate over potential October timing near the midterm elections.