The Federal Reserve raised its key interest rate on Wednesday.

It had kept the rate unchanged about six weeks earlier.

The rate-setting committee agreed unanimously.

Nearly all policymakers signaled that a second increase later this year would likely be appropriate.

Fed Chairman Kevin Warsh said the Fed's judgment about the geopolitical situation had changed.

Three factors pushed the committee from waiting to acting.

Renewed fighting in the Middle East has pushed gas prices up again.

The economy also shows signs of healthy growth, while inflation stays stubbornly high.

Gas reached $4.44 a gallon Thursday, up 38 cents from a month ago.

Diesel hit a record $6.40.

The move may not raise mortgages or other borrowing much in the short term.

Markets appear reassured by the Fed's commitment to fighting inflation.

The 10-year Treasury yield slipped Thursday.

Oscar Munoz of TD Securities said the increase shows the Fed takes sticky inflation seriously and is ready to act.

For months, officials debated whether higher oil and gas prices from the Iran war were only a temporary inflation shock.

With the war in its seventh month, they no longer count on that.

The Fed's latest statement dropped a reference to supply shocks.

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

Warsh said the economy appears to be strengthening, though inflation has outpaced average incomes for five months.

President Donald Trump criticized the Fed and called for much lower rates, but did not attack Warsh.

Economists say other forces are also lifting longer-term rates.

These include AI data center investment and high government debt.