Image: Federal Reserve Chairman Kevin Warsh and his colleagues raised their benchmark interest rate Wednesday, in an effort to tamp down demand and bring prices under control. Win McNamee/Getty Images

Scott Horsley of NPR reports: “The Federal Reserve raised interest rates for the first time in more than three years Wednesday, in a show of its determination to attack stubborn inflation.

The central bank raised its benchmark interest rate by a quarter percentage point to a range between 3.75% and 4%. That makes it more costly to borrow money to buy a car, grow a business or carry a balance on a credit card.

“Inflation remains elevated,” Fed policymakers said in a statement. “Today’s policy action will support a timelier return to the Committee’s 2% goal.”

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