The Fed Bucks Trump and Raises Interest Rates
War-fueled inflation remains too high, the U.S. central bank said, requiring the first hike in three years.
The Federal Reserve, led by Kevin Warsh, has raised interest rates for the first time in three years due to high inflation, despite President Donald Trump's preference for lower rates. Most Fed officials anticipate at least one more rate hike this year and more in 2027. Warsh emphasized that rising inflation, particularly due to geopolitical factors like the Iran conflict and U.S. tariffs, is the main driver of the decision.
The decision is expected to impact borrowing costs for mortgages, car loans, and business loans, potentially slowing economic growth.
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