US Economy: Fed Interest Rate Decision: Experts See Credibility Preserved
The new Fed chief is backing up his words with actions, the US central bank is slightly raising its key interest rates. That's enough to calm experts - for now.
The US Federal Reserve has raised its benchmark interest rate by 0.25 percentage points to a range of 3.75 to 4.00 percent, its first increase since July 2023. The move was welcomed by economists, who see it as a demonstration of the Fed's commitment to tackling inflation. Fed Chair Kevin Warsh said the decision was necessary to fulfill the Fed's mandate to ensure stable prices, and that the central bank's independence allows it to focus on its area of expertise.
US President Donald Trump, who has previously criticized the Fed's interest rate decisions, said the increase was a mistake and that interest rates are "too high". The Fed's move may not be the last, with 16 of 18 Fed members expecting at least one more rate hike this year.
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.
