The Federal Reserve raised its key interest rate on Wednesday.

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

The rate-setting committee agreed on the move.

Almost all members said a second increase later this year would probably be right.

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

Three things pushed the committee to act instead of waiting.

Fighting in the Middle East started again.

This pushed gas prices up again.

The economy also looks healthy and is growing.

But inflation is still high and will not come down.

Gas reached $4.44 a gallon on Thursday.

That is up 38 cents from a month ago.

Diesel hit a record $6.40.

The move may not raise mortgages or other borrowing much soon.

Markets seem calm because the Fed wants to fight inflation.

The 10-year Treasury yield slipped Thursday.

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

He said the Fed is ready to act.

For months, officials asked if higher oil and gas prices from the Iran war were only a short inflation problem.

The war is now in its seventh month.

They no longer think it is short.

The Fed's new statement dropped a mention of 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 pushing long-term rates up.

These include AI data center investment and high government debt.