US Fed hikes interests rates to curb inflation in move likely to rile Trump
The US economy has been dealing with years of higher-than-target inflation, and prices have surged in the wake of Mr Trump's war on Iran, his signature tariff policies and the ongoing AI boom.
The Federal Reserve has increased interest rates by 25 basis points in an effort to combat high inflation, a decision that is likely to draw criticism from President Donald Trump. The Federal Open Market Committee unanimously voted to raise interest rates to a range of 3.75 to 4.00 percent, citing persistently high inflation and the need to bring inflation back to the central bank's 2 percent target.
The Federal Reserve's Summary of Economic Projections indicated that a majority of policymakers anticipate at least one additional rate hike before year's end, with some even expecting two more. The last rate hike occurred in 2023, when the central bank was still grappling with post-pandemic inflation. This move comes as the US economy has been grappling with years of inflation above the target set by the Federal Reserve.
President Trump, who has long called for lower rates, has threatened to take action against the central bank if it does not act.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Wall Street gyrates after Fed hikes interest rate to battle inflation koreatimes.co.kr
- Fed, battling persistent inflation, ups rates 1st time in 3 years asiatimes.com
- Jeff Gundlach says the Fed should have hiked rates by more to fight rising inflation cnbc.com
- U.S. interest rates hiked after Trump urged lower borrowing costs torontosun.com
- Fed raises rates, signals another hike as inflation persists moneyweb.co.za
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