Fed raises rates to 3.75%-4.0% in first hike in three years

The Federal Reserve raised its rate 25 basis points — 0.25 point — to 3.75% to 4.0%, Reuters reported. Markets had priced an 88.5% chance of the move, per Reuters. It was the first increase in three years. The question for savers and borrowers is whether higher rates cool inflation without choking growth.