Fed defies Trump with first rate rise since 2023
Central bank signals willingness for further action as chair Kevin Warsh warns that ‘inflation is too high and has been for too long’
US President Donald Trump lamented the Federal Reserve's decision to raise interest rates for the first time in over three years, posting on Truth Social that he believes rates should be "1%, or less". Trump stated that the US is "the Best Credit in the World" and that lowering borrowing costs would benefit the nation, as it is experiencing a "boom with new investment".
He suggested that ending trade deficits with deficit-ridden countries could generate an additional $1.5 trillion annually, emphasizing that running deficits is akin to carrying a loss. Meanwhile, the Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%-4%, citing resilient domestic spending, strong productivity growth, and robust capital investment.
However, the Fed acknowledged that inflation remains elevated and requires further reduction to meet its 2% target.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- ‘We’re the best credit’: Trump fumes after 1st Fed rate hike in over 3 yrs timesofindia.indiatimes.com
- US Federal Reserve defies Trump with interest rate hike france24.com
- Fed rate hike fails to calm troubled markets as Dow falls 600 points. Expect more sharp swings in stocks and bonds. marketwatch.com
