Fed raises rates in search of 'timelier' drop in inflation, sees more tightening ahead
WASHINGTON: The Federal Reserve raised interest rates on Wednesday and flagged more hikes in the coming months, with new U.S. central bank chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration’s inability so far to control inflation that policymakers worry could worsen. While President Donald Trump had promised to lower prices on his watch, the…
The Federal Reserve raised interest rates by a quarter of a percentage point to the 3.75%-4.00% range on Wednesday, signaling more hikes in the coming months. This decision, made unanimously by the 18 policymakers, was a response to persistent inflation that the central bank believes could worsen, despite the Trump administration's efforts to control it.
Fed Chair Kevin Warsh highlighted the strength of the economy, with strong job growth, resilient domestic spending, and robust capital investment, as contributing factors to the need for tighter monetary policy. Warsh also noted that inflation remains elevated, stating that the rate hike supports a timelier return to the committee's 2% inflation goal.
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