US economy: US Federal Reserve raises key interest rate for the first time since July 2023
Fed Chief Warsh recently signaled his willingness to raise interest rates, and the financial markets expected this with great certainty. However, this was by no means certain.
The US Federal Reserve has raised its key interest rate for the first time since summer 2023, increasing it by 0.25 percentage points to 3.75-4.00 percent. The move is likely to put Fed Chairman Kevin Warsh at odds with US President Donald Trump, who has been calling for lower interest rates. The European Central Bank had also raised its interest rate recently, citing rising inflation due to the Iran war.
The Fed's decision was expected by many economists, who had been watching for a move to combat high inflation, which remains above the Fed's target of 2 percent.
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.
