US central bank: 25 basis points for Kevin Warsh's credibility
There were major doubts about his independence from the US government. With the current interest rate hike, the Fed chief is showing that he is not a puppet of the White House.
The US Federal Reserve raised interest rates by 25 basis points on Wednesday, as expected. The US inflation rate has exceeded the Fed's 2% target for 65 months, and Fed Chair Kevin Warsh has previously stated that it has been too high for too long. The recent escalation of the Iran conflict and rising oil prices are likely to keep inflationary pressure high and fuel concerns about potential secondary effects. The Fed's decision was likely influenced by the latest August inflation data, which suggested persistent inflation.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
