Why the Federal Reserve is lifting rates now, and what it means

WASHINGTON (AP) — About six weeks ago, Federal Reserve Chairman Kevin Warsh announced that a divided central bank was keeping its key interest rate unchanged.

But on Wednesday, the Fed’s rate-setting committee unanimously agreed to a rate hike, and nearly all policymakers signaled that a second increase later this year would likely be appropriate.

So what changed?

In short, the renewed fighting in the Middle East has pushed up gas prices again. And there are signs the economy is still growing at a health...