The Federal Reserve chairman has raised interest rates.

Chair Kevin Warsh announced that the Federal Reserve raised it for the first time in three years, increasing it by a quarter of a percentage point, The New York Times reported.

He took the interest rate to a new range of 3.75% to 4%, a move supported by all 12 members of the Federal Open Market Committee.

The move was done to cut what The Associated Press called “stubbornly-high inflation.”

The move came after President Donald Trump wanted a rate cut instead of an increase, the Times reported. Trump appointed Warsh as Fed Chair in May. Before taking the job, Warsh said rates could be reduced, the AP said.

But Fed officials believe the economy is growing “at a solid pace” and that productivity growth is “strong.”

The panel also foresees another increase later this year, bringing it to 4.1%.

What does the increase mean to consumers?

The AP said that the increase in the key rate, to about 3.9% could mean higher borrowing costs for mortgages, auto loans and credit cards.

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