US Federal Reserve defies Trump with interest rate hike
The US Federal Reserve has raised its key interest rates for the first time in three years, as it seeks to bring down high inflation. The policy decision sets up a potential confrontation between Chairman Kevin Warsh and President Donald Trump, who has repeatedly called on the central bank to cut interest rates. Also in the show - France extends fuel subsidies as fishermens' protests gather…
US President Donald Trump lamented the Federal Reserve's decision to raise interest rates for the first time in over three years, posting on Truth Social that he believes rates should be "1%, or less". Trump stated that the US is "the Best Credit in the World" and that lowering borrowing costs would benefit the nation, as it is experiencing a "boom with new investment".
He suggested that ending trade deficits with deficit-ridden countries could generate an additional $1.5 trillion annually, emphasizing that running deficits is akin to carrying a loss. Meanwhile, the Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%-4%, citing resilient domestic spending, strong productivity growth, and robust capital investment.
However, the Fed acknowledged that inflation remains elevated and requires further reduction to meet its 2% target.
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