The Federal Reserve raised rates by 0.25 percentage point today, its first interest-rate rise since 2023--a move that could spark tensions between Chairman Kevin Warsh and President Trump.

Markets took the 2 p.m. ET policy announcement in stride, with the S&P 500 adding to earlier gains and Treasury yields holding their ground after falling from recent highs. The 10-year yield was at 4.95%; the S&P 500 rose 0.4%, and the Nasdaq added 0.8%. The Dow industrials were roughly flat, while Brent crude futures were down 3% at $105.50 a barrel.

The stage had been set for the Fed to raise rates by a widening conflict in the Middle East that has pushed up oil prices and boosted inflation expectations.

Inflation has been running above the central bank's 2% target for more than five years. Some Fed officials have been arguing since April that it's time to raise interest rates to address that.