Federal Reserve expected to raise benchmark rate, defying Trump's demands
WASHINGTON — The Federal Reserve is widely expected to lift its short-term interest rate Wednesday for the first time in three years to fight stubbornly high inflation, a move that would put the central bank at odds with President Donald Trump's support for a cut. A quarter-point increase in the Fed's rate, currently about 3.6 percent, isn't guaranteed because Fed Chair Kevin Warsh doesn't…
The Federal Reserve faces a decision on Wednesday to raise its benchmark interest rate, a move that clashes with President Donald Trump's call for a rate cut. This quarter-point increase, from a current rate of approximately 3.6 percent, would mark the first hike in three years. However, Fed Chair Kevin Warsh's uncertainty about future actions makes the hike not a certainty.
Notably, Warsh's speech at the Fed’s annual conference in Jackson Hole, Wyoming, two weeks prior, indicated that inflation has not yet been tamed to the Fed's 2 percent target. The conflict with Iran continues to fuel oil and gas price hikes, keeping inflation above the desired level.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
