The Federal Reserve raised a key interest rate on Wednesday.

It had kept the rate the same about six weeks before.

The rate committee agreed on the raise.

Almost all members said a second raise later this year would be good.

Fed Chairman Kevin Warsh said the Fed's view of the world had changed.

Three things pushed the committee to act.

Fighting in the Middle East is back.

This pushed gas prices up again.

The economy also looks strong.

But inflation stays high.

Gas reached $4.44 a gallon on Thursday.

That is up 38 cents from a month ago.

Diesel hit a record $6.40.

The raise may not change mortgages much now.

Markets seem calm.

They trust the Fed to fight inflation.

The 10-year Treasury yield slipped Thursday.

Oscar Munoz of TD Securities said the raise shows the Fed takes inflation seriously.

He said the Fed is ready to act.

For months, officials asked a question.

Was the gas price jump from the Iran war only short?

The war is in its seventh month.

Now they do not think so.

The Fed's new statement dropped a line about supply shocks.

It said consumer and business spending "has been resilient."

Warsh said the economy looks stronger.

But inflation has been higher than average incomes for five months.

President Donald Trump criticized the Fed.

He called for much lower rates.

But he did not attack Warsh.

Economists say other things are also lifting long-term rates.

These include AI data center investment and high government debt.