The Fed defies Trump and raises interest rates, for the first time in three years, to 4%
The Federal Reserve meets market expectations, raising the price of money by 25 points in an attempt to curb inflation, despite pressure from the White House to lower interest rates.
The Federal Reserve has raised interest rates by 25 basis points to a range of 3.75%-4%, in line with market expectations, to combat inflation. The move, decided unanimously, is the first rate hike in over three years and comes despite pressure from the White House to lower rates. Fed Chairman Kevin Warsh stated that the decision was made considering global uncertainties and the resilience of the US economy, with a focus on achieving the 2% inflation target.
The rate hike aims to bring inflation back under control, which has remained elevated, with an annual increase of 3.4% in August.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
