Trump demands 1% or lower interest rate after first Fed hike since 2023

The US Federal Reserve raised interest rates by 25 basis points, marking its first rate hike since 2023. According to CNBC, President Donald Trump demanded the Federal Reserve slash interest rates to 1% or less, hours after the central bank's announcement.

The rate hike aims to tackle high inflation, with Fed Chair Kevin Warsh emphasizing that the central bank's main focus is on inflation, stressing confidence is needed that core inflation will move toward 2%, as reported by Ajel English. The decision was unanimous, and 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, Investing.com reported.

The rate hike led to an increase in shorter-dated US Treasury yields, with the two-year Treasury yield reaching 4.738%, its highest level since July 2024, and the 10-year yield turning higher during the session, Investing.com said. Le Monde English noted that the move is likely to anger President Donald Trump, who has demanded lower rates.

Brief written by urgent.news from CNBC, Investing.com, Le Monde English, Ajel English — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.