The Federal Reserve has voted to raise interest rates by a quarter point to a range of 3.75% to 4%, Fed Chair Kevin Warsh said at a press conference Wednesday afternoon. The announcement marks the first time the U.S. central bank has raised interest rates since 2023 during a period of especially high inflation. The Federal Open Market Committee voted unanimously in a widely anticipated move that clashes with President Trump’s repeated demands to lower interest rates.

“Inflation remains elevated,” the committee said in a statement. “Today’s policy action will support a timelier return to the committee’s 2% goal. The committee will deliver price stability.”

The committee also signaled that another rate hike could happen before year’s end.

The news comes as a months-long war in Iran has caused energy prices to skyrocket, and as the rise of AI threatens to add to inflation by increasing costs for electricity, computer chips and data center construction.

It’s also Warsh’s first major move as chair of the Board of Governors of the Federal Reserve System and the Federal Open Market Committee, a role he started in May after former Chair Jerome Powell completed his term.

The Federal Reserve interest rate hike could have several implications for promo. Financing costs could increase on loans and credit lines used to buy inventory. Rising rates may also lead many businesses to carry less inventory to save on costs, but that can result in shortages and longer lead times if they don’t properly plan. Others may pass the cost on to customers and may receive fewer orders as buyers cut back on spending.